Indian Oil Clears Rs 2.45bn for 424km Southern Gas Pipeline

Indian Oil Corporation’s board of directors has approved a Rs 2,448.70 crore capital expenditure for the construction and operation of a new natural gas infrastructure project. The decision, reported in a regulatory filing by MillenniumPost, targets the expansion of the company’s transport network along India’s southern coastline.

The approved project involves the Kochi-Kanyakumari-Thoothukudi Pipeline (KTPL), a 424.65-kilometer route connecting gas infrastructure in Kerala with demand centers in southern Tamil Nadu. This addition aims to bridge the geographic gap between existing upstream assets in the west and industrial consumers in the south.

Pipeline capacity and common carrier allocation

The KTPL will possess a total system capacity of 6.84 million standard cubic metres per day (mmscmd). To comply with regulatory mandates and enhance market liquidity, Indian Oil has designated at least 1.71 mmscmd of this volume as common-carrier capacity. This portion will be open to third-party users, ensuring the network serves broader industrial needs beyond the company’s own internal requirements.

Strategic expansion of southern gas network

The investment directly addresses the lack of dedicated gas transport links in the region. By connecting Kochi to Thoothukudi, the project integrates Kerala’s supply sources with Tamil Nadu’s consumption hubs. This structural improvement is expected to increase the reliability of gas deliveries for manufacturing and power generation sectors in the south.

Board approval and regulatory compliance

The Rs 2,448.70 crore outlay was formally sanctioned during the board meeting held on Monday. The filing confirms that the project structure adheres to applicable regulations regarding third-party access. This approval marks the final step in the internal governance process before construction activities can commence.