GAIL is likely to realign Tamil Nadu pipeline to connect LNG terminal in Kochi with Bengaluru

India: GAIL, India’s largest natural gas pipeline operator, will likely agree to Tamil Nadu’s demand of realigning the proposed natural gas pipeline form Kochi to Bengaluru. GAIL has also agreed to join a panel set-up by the Tamil Nadu state for considering an alternative route. Tamil Nadu Government is demanding to change the route of pipeline along the national highway as proposed route was damaging the agricultural lands. GAIL will require to increase the capex for project as new route along the highway would be 20% longer and require thicker pipe.

TechSci Research depicts that India is aggressively expanding its LNG terminal capacity to cater incremental demand of natural gas which would boost the LNG market in India. The Kochi LNG terminal was commissioned in August 2013 and operating at 2 to 5 % of its aggregate capacity due to lack to pipeline infrastructure. The Kochi to Bengaluru pipeline project is very important for Kochi LNG project. As on 31^st March 2016, only 150 Km of pipeline has been laid out of total length of 505 Km Kochi to Bengaluru pipeline.

According to recent published report of TechSci Research, “India LNG Market Forecast & Opportunities, 2025”, the total opportunity for RLNG in India is projected to increase from an estimated 52.34 mmscmd in 2016 to 305.10 mmscmd by 2025, registering a CAGR of more than 21% during 2016 – 2025. Upcoming LNG terminal projects, surging demand for natural gas in India and cost-effectiveness of LNG as compared to other alternative fuels are the major factors anticipated to positively influence the country’s LNG market scenario over the next ten years.