Skip to main content

Cost, benefits, concerns: Is the Chennai city gas pipeline project needed?

By N.S. Venkataraman* 
The Union Ministry of Environment, Forest and Climate Change has reportedly granted coastal regulation zone clearance for a natural gas pipeline project in Greater Chennai. The plan involves laying a 466-kilometre pipeline network to distribute natural gas, primarily for domestic and commercial use, starting from Vallur village. The pipeline—made of medium-density polyethylene with a 12 to 18-inch trunk line—will cost around Rs. 5,000 crore, including infrastructure, pipeline laying, and CNG stations.
Originally, the LNG terminal at Ennore—constructed by Indian Oil Corporation at a cost exceeding Rs. 5,000 crore—was intended to supply natural gas to industries, serving as fuel and feedstock for large-scale petrochemical and thermal power projects. The plan was never to use this terminal primarily for household distribution, which can only be a minor and optional application.
This raises a fundamental question: Should imported natural gas, re-gasified at Ennore, replace LPG—already well-distributed and functioning efficiently in Chennai? With LPG sourced both domestically and through imports, the system is well-oiled. Shifting to piped natural gas appears premature and economically questionable, especially considering that over 50% of India's natural gas is imported, priced at $10–$12 per MMBtu—four to six times higher than in gas-rich nations like Qatar. Comparatively, imported LPG costs around $14–$16 per MMBtu, and fluctuates with global energy markets.
Adding to this is the Rs. 5,000 crore investment in the pipeline network itself, along with operational and maintenance expenses, installation of gas meters, and other logistical costs. Given all this, consumers are unlikely to see a tangible price or convenience advantage over LPG.
The existing LPG distribution system is smooth, reliable, and supports significant employment. Displacing this with a new and costly infrastructure raises questions of necessity and efficiency. It also risks job losses in an already burdened economy.
One must also address the current underutilisation of the Ennore LNG terminal. Built with the vision of fuelling industrial expansion, the terminal is now underused because corresponding industrial development hasn’t kept pace. This mismatch suggests poor planning—or planning in a vacuum—where the infrastructure exists but the demand does not. It is a classic case of putting the cart before the horse.
A similar scenario unfolded in Kerala, where the LNG terminal at Kochi was meant to supply gas to Tamil Nadu and Karnataka. But opposition from local communities and lack of political support in Tamil Nadu shelved the inter-state pipeline. Today, the Kochi terminal operates far below economic capacity, serving only limited regions.
Will Ennore suffer the same fate?
Using imported natural gas for household distribution appears to be a weak justification, a desperate attempt to salvage an underutilised LNG terminal. Rather than industrialising at scale to make proper use of this infrastructure, the current plan seems a suboptimal compromise.
Industrial usage of natural gas would yield far higher economic returns than its use in households or small businesses. Switching domestic LPG to natural gas won’t improve the terminal’s return on investment in any meaningful way.
There are also safety risks. Methane, the main component of natural gas, is highly flammable and a potent greenhouse gas. Pipeline leaks—such as the one in Malaysia on April 1, 2025, which caused a major fire—highlight the hazards. In a densely populated city like Chennai, any such incident could be catastrophic, especially given the proposed pipelines would run beneath heavily trafficked urban areas, susceptible to pressure, vibration, and wear.
Chennai’s past infrastructure projects offer cautionary lessons. The stormwater drainage project, which involved major citywide excavation, has underperformed. Some flyovers, like the one near Adyar's LB Road, have proven poorly planned—too narrow for buses and unsafe for pedestrians. Meanwhile, the ongoing Metro Rail construction continues to severely disrupt daily life, with questionable necessity in certain routes.
We cannot afford another massive, disruptive project that may not deliver commensurate benefits.
Chennai has no shortage of seasoned technocrats and planners with global experience. Their voices must be heard. A thorough consultation process is essential—incorporating expert opinion and rigorous cost-benefit analysis. Based on current evidence and precedence, expert consensus may very well be against the project.
---
*Trustee, Nandini Voice for the Deprived, Chennai

Comments

TRENDING

Wave of disappearances sparks human rights fears for activists in Delhi

By Harsh Thakor*  A philosophy student from Zakir Hussain College, Delhi University, and an activist associated with Nazariya magazine, Rudra, has been reported missing since the morning of July 19, 2025. This disappearance adds to a growing concern among human rights advocates regarding the escalating number of detentions and disappearances of activists in Delhi.

How community leaders overcome obstacles to protect forests and pastures in remote villages

By Bharat Dogra  Dheera Ram Kapaya grew up in such poverty that, unable to attend school himself, he would carry another boy’s heavy school bag for five kilometers just to get a scoop of daliya (porridge). When he was finally able to attend school, he had to leave after class five to join other adolescent workers. However, as soon as opportunities arose, he involved himself in community efforts—promoting forest protection, adult literacy, and other constructive initiatives. His hidden talent for writing emerged during this time, and he became known for the songs and street play scripts he created to promote forest conservation, discourage child marriages, and support other social reforms.

‘Act of war on agriculture’: Aruna Rodrigues slams GM crop expansion and regulatory apathy

By Rosamma Thomas*  Expressing appreciation to the Union Agriculture Minister for inviting suggestions from farmers and concerned citizens on the sharp decline in cotton crop productivity, Aruna Rodrigues—lead petitioner in the Supreme Court case ongoing since 2005 that seeks a moratorium on genetically modified (GM) crops—wrote to Union Minister Shivraj Singh Chouhan on July 14, 2025, stating that conflicts of interest have infiltrated India’s regulatory system like a spreading cancer, including within the Indian Council for Agricultural Research (ICAR).

The GMO illusion: Three decades of hype, harm, and false hope

By Sridhar Radhakrishnan  Three decades of hype, billions of dollars spent, and still no miracle crop. It's time to abandon the GMO biotech fairy tale and return to the soil, the seed, and the farmer. “Trust us,” they said. “GMOs will feed the world.” Picture a world where there is plenty of food, no hunger, fields grow without chemical pesticides, children are saved from malnutrition, and people live healthily.

Sandra Gonzalez Sanabria: An inspiring life from Colombia’s Amazonian valley

By Vidya Bhushan Rawat*  In the village of Héctor Ramírez, known as Agua Bonita, in La Montañita, Caquetá, Colombia, a vision of peace and renewal is unfolding. In the pre-2016 period, this would have been nearly impossible for outsiders to visit, as it was the epicenter of violent resistance against state oppression. However, after the Peace Accord was signed between the Colombian government and former revolutionaries—marking the end of a 70-year insurgency that claimed over 400,000 lives until 2025, including civilians, rebel fighters, and security personnel—things began to change. Visiting Agua Bonita during the Global Land Forum in Bogotá revealed a village of hope and resilience. Former FARC revolutionaries have settled here and transformed the village into a center of peace and aspiration.

Indigenous Karen activist calls for global solidarity amid continued struggles in Burma

By A Representative   At the International Festival for People’s Rights and Struggles (IFPRS), Naw Paw Pree, an Indigenous Karen activist from the Karen Human Rights Group (KHRG), shared her experiences of oppression, resilience, and hope. Organized with the support of the International Indigenous Peoples Movement for Self-Determination and Liberation (IPMSDL), the event brought together Indigenous and marginalized communities from across the globe, offering a rare safe space for shared learning, solidarity, and expression.

Activists allege abduction and torture by Delhi Police Special Cell in missing person probe

By A Representative   A press statement released today by the Campaign Against State Repression (CASR) alleges that several student and social activists have been abducted, illegally detained, and subjected to torture by the Delhi Police Special Cell. The CASR claims these actions are linked to an investigation into the disappearance of Vallika Varshri, an editorial team member of 'Nazariya' magazine.

India’s zero-emission, eco-friendly energy strategies have a long way to go, despite impressive progress

By N.S. Venkataraman*   The recent report released by OPEC’s World Oil Outlook 2025 has predicted that by the year 2050, crude oil would replace coal as India’s key energy source. Clearly, OPEC expects that India’s dependence on fossil fuels for energy will continue to remain high in one form or another.

Gender violence defies stringent laws: The need for robust social capital

By Dr. Manoj Kumar Mishra*  The tragic death of Miss Soumyashree Bisi, a 20-year-old student from Fakir Mohan College, Balasore, who reportedly self-immolated due to harassment, shocked the conscience of Odisha. Even before the public could process this horrifying event, another harrowing case emerged—a 15-year-old girl from Balanga, Puri, was allegedly set ablaze by miscreants. These incidents are not isolated; they highlight a disturbing pattern of rising gender-based violence across the state and the country.