State-run GAIL India today said it has signed a memorandum of understanding (MoU) with Kerala to develop natural gas infrastructure and city gas distribution network in the state.     

The MoU was signed by GAIL Executive Director (Marketing) J Wason and Kerala State Industries Development Corp Managing Director Alkesh Sharma in Thrivananthpuram yesterday. 

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It also seeks to set up a joint venture for marketing of gas or CNG to domestic, industrial and transport sectors.
GAIL and KSIDC would initiate a joint exercise for immediate assessment of demand for natural gas in the state.     

The two would also conduct techno-economic studies for laying pipelines to demand centres and setting up city gas distribution network in towns.     

"The MoU also provides for GAIL and Government of Kerala to identify industrial clusters for distribution of natural gas as fuel and to determine modus operandi for setting up of joint ventures by GAIL," the release said. 

The GAIL board has already approved laying of 1,114-km Kochi-Kanjirkkod-Mangalore-Bengaluru pipeline at an estimated cost of Rs 3,032 crore.

The pipeline, GAIL said, can carry 16 million standard cubic meters of gas per day.     

In phase-1 of the project, 94 km pipeline will be laid from Kochi to Alwaye to connect Petronet LNG's upcoming liquefied natural gas (LNG) import terminal at Kochi to markets in the region. The pipeline being laid at an investment of Rs 267.50 crore is scheduled to be completed by 2011-12.     

A 1018-km pipeline will be laid from Alwaye to Kanjirrkkod, Mangalore, Palghat and Bengaluru in phase-II at an investment of Rs 2,764.50 crore by 2012-13.

"GAIL will also be laying 1,389-km Dabhol-Bengaluru pipeline at an investment of Rs 4,543.43 crore... (and) will be connected to the Kochi-Kanjirkkod-Bengaluru pipeline," it added.

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