Bid & Tender
Deadlock over GAIL India’s Kochi-Bengaluru LNG Pipeline Project Ends

Date : May 17, 2018

Ending the deadlock over Kochi-Bengaluru LNG pipeline project, the Gas Authority of India Ltd (GAIL) has awarded the work to lay 94-km pipeline along the Koottanadu-Walayar stretch to Corrtech International Private Ltd. The completion of the stretch is vital for Kerala as the state would get domestic LNG at half the existing price if it is connected to national gas grid in Bengaluru.

 

Though the Kochi-Koottanadu-Bengaluru-Mangaluru LNG pipeline project was started in January, 2013, the GAIL had to terminate the contractors in November, 2013 as they couldn’t make any progress in the laying of pipes. The main reason for delay was the objection from land owners.

 

The GAIL would be awarding the pipelaying work along 42-km in Bengaluru-Krishnagiri stretch in a week. “Laying of 438-km pipeline from Kochi to Mangaluru will be over by November-December. We will be able to complete the laying of main pipeline to Walayar and connection lines for piped natural gas (PNG) in Coimbatore by June next year. Then, 8 million cubic metre of LNG from the plant at Puthuvype, with a capacity to 16 million cubic metre, can be sold,” said Tony Mathew, general manager and officer-incharge GAIL in the state.

 

As of now, the average sales from Petronet LNG is around 2 million cubic metre and the tax earned by the state government is Rs 2 billion per annum. This will go up in the range of Rs 4 billion to Rs 4.50 billion when the pipeline up to Walayar is completed, sources with GAIL said. Revenue earned by International Container Trans-shipment Terminal at Vallarpadom will also go up.

 

“Once connected to domestic grid, Kerala will get its share and will be able to provide LNG to different factories at half the international rate and it will be a boost for industries in areas like Kanjikode,” Mathew said.

 

Of the 438km Kochi-Mangaluru line, we have completed lowering and welding of pipes along 330km. “The pipe has to be laid along 71 waterbodies in Koottanadu-Mangaluru sector. The work up to Mangaluru can be completed by November-December,” Tony Mathew said. The pipeline up to Koottanad will be commissioned in June 2018, he said.