It is understood the firm has already received ROUs from the authorities for half of the pipelines, with the total project estimated to cost around US$436 million.
According to the paper Fertilisers and Chemicals Travancore, a unit of BSES Kerala Power, and the state electricity board’s diesel plant in Kochi are expected to be among the key customers in the state, although there is expected be enough gas offtake to make the Kochi LNG terminal financially viable.
In related news, GAIL has announced it plans to invest around US$228 million for three projects in Kerala.
“The investments proposed are a petrochemical complex in Kasaragod district with an outlay of Rs 7,000 crore (US$153 million), the Rs 2,000 crore (US$43.6 million) LNG pipeline, and a Rs 1,450 crore (US$31.6 million) LNG terminal at the Puthu Vypeen island in Kochi, for which Petronet is a front runner,” said GAIL.
