IOCL Clears ₹2,448 Crore Kochi-Thoothukudi Gas Pipeline
Board approval for the 425 km KPTL project aims to raise Kochi LNG terminal utilization from 26.3% to support regional industrial demand.
Key points
- IOCL board approved the ₹2,448.70 crore Kochi-Kanyakumari-Thoothukudi pipeline with a total capacity of 6.84 MSCMD.
- Kochi LNG terminal utilization stood at 26.3% in FY26 due to insufficient evacuation infrastructure to regional demand centers.
- Petronet LNG is expanding Kochi truck-loading bays to six and developing LNG bunkering services to diversify revenue streams.
Indian Oil Corporation’s board has approved the investment for the Kochi-Kanyakumari-Thoothukudi natural gas pipeline, a 425 km infrastructure project valued at ₹2,448.70 crore. The company stated that the move is designed to resolve chronic underutilization at the Kochi LNG terminal by providing the necessary evacuation capacity to demand centers in Tamil Nadu and Kerala.
The pipeline will feature a total system capacity of 6.84 million standard cubic metres per day, with at least 1.71 MSCMD reserved as common carrier capacity for third-party gas transport. This infrastructure links Petronet LNG’s Kochi terminal directly to IOCL’s existing ETBPNMTPL network at Thoothukudi, bridging a critical gap in the southern Indian gas grid.
Low terminal utilization drives project
The primary financial driver for this approval is the persistent lack of demand at the Kochi terminal. In FY26, the 5 million tonnes per annum facility recorded a capacity utilization of only 26.3 percent, sending out 1.31 million tonnes, while Q1 FY27 utilization slipped to 23.27 percent. According to an industry source cited by BusinessLine, the absence of pipeline infrastructure to major industrial hubs has prevented the terminal from reaching viable operating levels since its inception in 2013.
Pipeline route and capacity details
The KPTL pipeline originates at the Kochi LNG terminal and runs through Kottayam, Kottarakkara, Kattakkada, and Nagercoil before terminating at Thoothukudi. Upon connection to the ETBPNMTPL, the system will facilitate gas distribution to industrial consumers and support the expansion of city gas distribution networks across the two states. The inclusion of common carrier capacity ensures that unused pipeline volume remains available for external suppliers to transport their gas.
Kochi terminal expansion initiatives
Concurrently, Petronet LNG is pursuing diversification to improve terminal economics. The company is upgrading facilities to offer LNG bunkering services for maritime vessels, aligning with global shifts toward cleaner marine fuels. Additionally, plans are underway to increase truck-loading bays at Kochi from four to six, aiming to enhance the availability of LNG for industrial applications and long-haul transportation.
