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

When democracy becomes a performance: The Tibetan exile experience

By Tseten Lhundup*  I was born in Bylakuppe, one of the largest Tibetan settlements in southern India. From childhood, I grew up in simple barracks, along muddy roads, and in fields with limited resources. Over the years, I have watched our democratic system slowly erode. Observing the recent budget session of the 17th Tibetan Parliament-in-Exile, these “democratic procedures” appear grand and orderly on the surface, yet in reality they amount to little more than empty formalities. The parliamentarians seem largely disconnected from the everyday struggles faced by ordinary exiled Tibetans like us.

Study links sanctions to 500,000 deaths annually leading to rise in global backlash

By Bharat Dogra  International opinion is increasingly turning against the expanding burden of sanctions imposed on a growing number of countries. These measures are contributing to humanitarian crises, intensifying domestic discord, and heightening international tensions, thereby increasing the risks of conflicts and wars. 

Dhurandhar: The Revenge — Blurring the line between fiction and political narrative

By Mohd. Ziyaullah Khan*  "Dhurandhar: The Revenge" does not wait to be remembered; it arrives almost on the heels of its predecessor, released on March 19, 2026, just months after the first film’s December 2025 debut. The speed of its arrival feels less like creative urgency and more like calculated timing—cinema responding not to storytelling rhythm but to the emotional climate of its audience. Director Aditya Dhar, along with actor Yami Gautam, appears acutely aware of this moment and how to harness it.

Beyond the island: Top mythologist reorients the geography of the Ramayana

By Jag Jivan   In a compelling new analysis that challenges conventional geographical assumptions about the ancient epic, writer and mythologist Devdutt Pattanaik has traced the roots of the Ramayana to the forests and river systems of Central and Eastern India, rather than the peninsular south or the modern island nation of Sri Lanka.

BJP accounts for 99% of political donations in Gujarat: Corporate giants dominate

By Jag Jivan   An analysis of the official data on donations received by national parties from Gujarat during the Financial Year 2024-25 reveals a staggering concentration of funding, with the Bharatiya Janata Party (BJP) accounting for nearly the entirety of the contributions. The data, compiled in a document titled "National Parties donations received from Gujarat during FY-2024-25," lists thousands of transactions, painting a detailed picture of the financial backing for political parties from one of India’s most industrially significant states.

Alarming decline in India's repair culture threatens circular economy goals: Study

By Jag Jivan  A comprehensive new study by environmental research and advocacy organisation Toxics Link has painted a worrying picture of India's fading repair culture, warning that the trend towards replacement over repair is accelerating the country's already critical e-waste crisis.

Captains extraordinaire: Ranking cricket’s most influential skippers

By Harsh Thakor*  Ranking the greatest cricket captains is a subjective exercise, often sparking passionate debate among fans. The following list is not merely a tally of wins and losses; it is an assessment of leadership’s deeper impact. My criteria fuse a captain’s playing record with their tactical skill, placing the highest consideration on their ability to reshape a team’s fortunes and inspire those around them. A captain who inherited a dominant empire is judged differently from one who resurrected a nation’s cricket from the doldrums. With that in mind, here is my perspective on the finest leaders the game has ever seen.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

‘No merit’ in Chakraborty’s claims: Personal ethics talk sans details raises questions

By Jag Jivan  A recent opinion piece published in The Quint by Subhash Chandra Garg has raised questions over the circumstances surrounding the resignation of Atanu Chakraborty from HDFC Bank , with Garg stating that the exit “raises doubts about his own ‘ethics’.” Garg, currently Chief Policy Advisor at Subhanjali and former Secretary of the Department of Economic Affairs, Government of India, writes that the Reserve Bank of India ( RBI ) appears to find no substance in Chakraborty’s claims, noting, “It is clear the RBI sees no merit in Atanu Chakraborty’s wild and vague assertions.”