Indian Oil Approves ₹2,448.70 Crore Gas Pipeline
Indian Oil Approves ₹2,448.70 Crore Gas Pipeline
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Key Points
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Indian Oil’s approval was disclosed to stock exchanges under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, following a board meeting held on September 21, 2026, from 11 a.m. to 1:15 p.m.
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The pipeline is intended to connect the Kochi LNG terminal with downstream industrial and city-gas distribution demand centers in southern India, with operations expected to incorporate regasified LNG into existing distribution networks.
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Third-party use of the common-carrier capacity would be governed by open-access rules established by the Petroleum and Natural Gas Regulatory Board, allowing eligible gas marketers to lease transmission capacity.
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The project remains subject to applicable statutory clearances and other implementation requirements, according to the company’s disclosure.
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Indian Oil shares closed higher on the announcement day in one market report, while the stock had nevertheless fallen more than 17% so far in 2026.
Indian Oil Corporation's board approved a ₹2,448.70 crore investment to build and operate a 424.65-kilometer natural gas pipeline connecting Kochi, Kerala to Thoothukudi, Tamil Nadu via Kanyakumari Urban Acres. The pipeline will transport 6.84 million metric standard cubic meters of gas daily, with at least 1.71 MMSCMD reserved for third-party access Big Info. The project marks a major step toward expanding gas infrastructure across southern India, though no construction timeline or commissioning date has been announced.
Pipeline Connects LNG Terminal to Regional Markets
The Kochi-Kanyakumari-Thoothukudi pipeline will link Indian Oil's Kochi LNG terminal with industrial and city-gas demand centers across southern India Hindu Business Line. Regasified LNG will flow into existing distribution networks, serving factories and household consumers across Kerala and Tamil Nadu. The route passes through three key coastal cities, creating a critical transmission corridor for the southern region.
Open-Access Rules Enable Third-Party Competition
The pipeline reserves 1.71 MMSCMD of its total 6.84 MMSCMD capacity for third-party use Millennium Post. The Petroleum and Natural Gas Regulatory Board will govern access through open-access rules, allowing eligible gas marketers to lease transmission capacity. This common-carrier approach promotes competition and encourages multiple suppliers to serve the southern market.
Board Cleared Project Under Stock Exchange Disclosure Rules
Indian Oil's board met on September 21, 2026, from 11 a.m. to 1:15 p.m. to approve the investment Urban Acres. The company disclosed the decision to stock exchanges under SEBI Listing Obligations and Disclosure Requirements Regulations, a mandatory transparency requirement for publicly listed companies. The project remains subject to statutory clearances and other implementation requirements before construction can begin.
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