GAIL lines up customers for Kochi gas pipeline

Vol 20, PW 7 (15 Dec 16) Midstream & Downstream

GAIL is stepping up marketing efforts to line up customers for its under-construction R-LNG pipeline from the Kochi LNG terminal to Mangalore in Karnataka.

One major customer is likely to be Apollo Tyres, one of India's leading tyre manufacturers, with factories across Kerala. A source at project consultant Mecon tells us GAIL is already supplying gas to one Apollo factory which is along the route of the 200-km Phase-I stretch of the pipeline, laid several years ago.

"Apollo also has a factory which is along the route of the (planned) Phase-II stretches," he says. Kerala Tourism, a government promotion agency, might also take gas to five-star hotels while glass factories in Mangalore are believed to be interested.

GAIL meanwhile has scheduled a pre-bid on December 17 for companies interested in a tender to lay four 24-inch diameter Phase-II additional stretches of the pipeline totalling 216.23-km with bids due by December 27. Section IIIA will be 64.02-km from sectionalising valve station SV-7M to intermediate pigging station IP-2M on the Mangalore spurline; while Section IIIB will be 47.06-km from IP-2M to SV-13M; Section IVA will be 70.32-km from SV-13M to SV-14M; and Section IVB will be 34.83-km connecting to the Mangalore Chemical and Fertilizers factory in Karnataka.

GAIL is already supplying gas through Phase-I of the pipeline to NTPC's 360-MW Kayamkulam power station and Bharat Petroleum's 9.5m t/y Kochi refinery.

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