Indian, Chinese Firms Interested in Building GAIL's Gas Pipeline in South India

A Chinese firm and five Indian companies are eyeing the contract to build a pipeline that would connect Petronet’s Kochi LNG terminal to cities in South India.

According to Financial Express, Kochi-Kootanad-Managalore-Bengaluru pipeline project of GAIL India could be a lease of life for the 5 mtpa terminal which has seen mere 5 percent capacity utilisation due to lack of pipeline infrastructure.  

Bids have been invited for two sections of the stretches of 220 km covering five districts of Kerala — Ernakulam, Thrissur, Palakad, Mallapuram, and Kozhikode, the newspaper reported.

For the 90 km stretch six bids received are from Punj Lloyd (PLL), Corrtech, Kalptaru Power Transmission (KPTL), JSIW, IL&FS and China Petroleum Pipeline Bureau (CPP). For the other section of 130-km PLL, KPTL, JSIW, IL&FS and CPP have submitted bids, an official told Financial Express.

The bids are being evaluated and the job will be awarded in August 2016, and the work will commence in September-October this year, the official added.

The pipeline is expected to boost Kochi LNG terminal’s capacity to at least 50 percent.