IOC board has approved a Rs 2,448.70 crore investment for a new gas pipeline connecting Kochi to Thoothukudi.

Indian Oil’s board has approved spending Rs 2,448.70 crore to build and operate a new natural gas pipeline connecting Kochi in Kerala to Thoothukudi in Tamil Nadu.

This decision was taken at a board meeting held on September 21, which ran from 11 am to 1:15 pm. The company confirmed the development through a regulatory filing to the stock exchanges.

The pipeline, officially called the Kochi Kanyakumari Thoothukudi Natural Gas Pipeline, will stretch across 424.65 km, passing through Kochi, Kanyakumari and Thoothukudi.

Once built, it will have a total capacity of 6.84 million metric standard cubic metres per day.

Out of this, at least 1.71 million metric standard cubic metres per day has been set aside as common carrier capacity, meaning other companies will also be able to use part of the pipeline to transport their own gas.

This move is part of a larger trend across India, where the government and oil companies have been steadily expanding natural gas infrastructure.

The idea is to improve connectivity between regions and increase the share of gas in the country’s overall energy mix, as part of a broader shift toward cleaner fuel sources.

Coming to the stock, Indian Oil Corporation shares closed at Rs 136.53 on the NSE on Monday.

The stock has had a difficult year so far, down more than 17% on a year to date basis, even as the company continues to invest in expanding its energy infrastructure footprint.

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