Indian Oil said on Monday that it will invest Rs. 24.49 bn to build and operate a natural gas pipeline connecting Kochi in Kerala with Thoothukudi in Tamil Nadu. The project will create a new southern India link for transporting natural gas between the two states.

The pipeline will stretch 424.65 km and pass through Kochi, Kanyakumari and Thoothukudi, according to the company. It will have an overall capacity of 6.84 mn standard cubic metres per day (MMSCMD), enabling the movement of substantial quantities of natural gas through the corridor.

The facility will also include common carrier capacity of 1.71 MMSCMD. This capacity is intended to support the transportation of gas for users beyond the pipeline’s primary requirements, although the company did not provide further details on potential users or operating arrangements.

The investment comes as India seeks to expand its natural gas infrastructure and improve connectivity across its energy network. The country is also working to increase the share of gas in its energy mix as it pursues cleaner fuel alternatives.

The Kochi-Thoothukudi project will extend gas infrastructure further into southern India, linking important locations in Kerala and Tamil Nadu. Indian Oil did not disclose a construction schedule, commissioning date or additional project financing details in its announcement.

The company’s investment is denominated at Rs. 24.49 bn, equivalent to $255.6 mn based on the exchange rate provided in the announcement. The stated conversion used a rate of Rs. 95.82 to the US dollar. The project’s route and capacity details indicate that it is designed as a significant regional gas transportation asset, while the common carrier component could provide access to the network for additional customers.