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

Whither space for the marginalised in Kerala's privately-driven townships after landslides?

By Ipshita Basu, Sudheesh R.C.  In the early hours of July 30 2024, a landslide in the Wayanad district of Kerala state, India, killed 400 people. The Punjirimattom, Mundakkai, Vellarimala and Chooralmala villages in the Western Ghats mountain range turned into a dystopian rubble of uprooted trees and debris.

Advocacy group decries 'hyper-centralization' as States’ share of health funds plummets

By A Representative   In a major pre-budget mobilization, the Jan Swasthya Abhiyan (JSA), India’s leading public health advocacy network, has issued a sharp critique of the Union government’s health spending and demanded a doubling of the health budget for the upcoming 2026-27 fiscal year. 

Iswar Chandra Vidyasagar’s views on religion as Tagore’s saw them

By Harasankar Adhikari   Religion has become a visible subject in India’s public discourse, particularly where it intersects with political debate. Recent events, including a mass Gita chanting programme in Kolkata and other incidents involving public expressions of faith, have drawn attention to how religion features in everyday life. These developments have raised questions about the relationship between modern technological progress and traditional religious practice.

Stands 'exposed': Cavalier attitude towards rushed construction of Char Dham project

By Bharat Dogra*  The nation heaved a big sigh of relief when the 41 workers trapped in the under-construction Silkyara-Barkot tunnel (Uttarkashi district of Uttarakhand) were finally rescued on November 28 after a 17-day rescue effort. All those involved in the rescue effort deserve a big thanks of the entire country. The government deserves appreciation for providing all-round support.

Election bells ringing in Nepal: Can ousted premier Oli return to power?

By Nava Thakuria*  Nepal is preparing for a national election necessitated by the collapse of KP Sharma Oli’s government at the height of a Gen Z rebellion (youth uprising) in September 2025. The polls are scheduled for 5 March. The Himalayan nation last conducted a general election in 2022, with the next polls originally due in 2027.  However, following the dissolution of Nepal’s lower house of Parliament last year by President Ram Chandra Poudel, the electoral process began under the patronage of an interim government installed on 12 September under the leadership of retired Supreme Court judge Sushila Karki. The Hindu-majority nation of over 29 million people will witness more than 3,400 electoral candidates, including 390 women, representing 68 political parties as well as independents, vying for 165 seats in the 275-member House of Representatives.

Jayanthi Natarajan "never stood by tribals' rights" in MNC Vedanta's move to mine Niyamigiri Hills in Odisha

By A Representative The Odisha Chapter of the Campaign for Survival and Dignity (CSD), which played a vital role in the struggle for the enactment of historic Forest Rights Act, 2006 has blamed former Union environment minister Jaynaynthi Natarjan for failing to play any vital role to defend the tribals' rights in the forest areas during her tenure under the former UPA government. Countering her recent statement that she rejected environmental clearance to Vendanta, the top UK-based NMC, despite tremendous pressure from her colleagues in Cabinet and huge criticism from industry, and the claim that her decision was “upheld by the Supreme Court”, the CSD said this is simply not true, and actually she "disrespected" FRA.

Zhou Enlai: The enigmatic premier who stabilized chaos—at what cost?

By Harsh Thakor*  Zhou Enlai (1898–1976) served as the first Premier of the People's Republic of China (PRC) from 1949 until his death and as Foreign Minister from 1949 to 1958. He played a central role in the Chinese Communist Party (CCP) for over five decades, contributing to its organization, military efforts, diplomacy, and governance. His tenure spanned key events including the Long March, World War II alliances, the founding of the PRC, the Korean War, and the Cultural Revolution. 

Pairing not with law but with perpetrators: Pavlovian response to lynchings in India

By Vikash Narain Rai* Lynch-law owes its name to James Lynch, the legendary Warden of Galway, Ireland, who tried, condemned and executed his own son in 1493 for defrauding and killing strangers. But, today, what kind of a person will justify the lynching for any reason whatsoever? Will perhaps resemble the proverbial ‘wrong man to meet at wrong road at night!’

Delhi Jal Board under fire as CAG finds 55% groundwater unfit for consumption

By A Representative   A Comptroller and Auditor General (CAG) of India audit report tabled in the Delhi Legislative Assembly on 7 January 2026 has revealed alarming lapses in the quality and safety of drinking water supplied by the Delhi Jal Board (DJB), raising serious public health concerns for residents of the capital.