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

NEW DELHI: Gail, India's largest natural gas pipeline operator, will likely agree to Tamil Nadu's demand

of realigning the proposed pipeline to connect Petronet's LNG terminal in Kochi with Bengaluru along

the national highway, an issue that has held up Rs 3,300-crore project for years. The state wants to

avoid damage to farms and the dispute has reached Supreme Court.

Protests from thousands of farmers delayed the project that was to be completed by early 2013. This

has hurt GAIL and Petronet. The Kochi LNG terminal is ready for almost three years but barely

operational.

Gail has now agreed to join a panel set up by the state to consider an alternative route. Top Gail

executives recently met Tamil Nadu officials for discussion. Industry sources said if the new route is

aligned along the highway, it would be 20% longer and more costly but Gail wants to complete the

project quickly. It is reluctant as building the pipeline along a highway needs thicker pipes.

NGS INDIA