GAIL Plans Expansion of Gas Pipeline Network, LNG Sourcing, Petrochemicals, Clean Energy
GAIL chairman Deepak Gupta said the year had highlighted the growing importance of balancing energy security with the global shift toward cleaner fuels
New Delhi: State-owned gas utility major Gail (India) Ltd plans to expand its natural gas pipeline network, diversify LNG sourcing and shipping, scale up petrochemicals and LPG infrastructure, and invest in clean-energy technologies as geopolitical disruptions underscore the need for greater energy security, the company's chairman said on Thursday.
Addressing Gail's 42nd annual general meeting, Deepak Gupta said the year had highlighted the growing importance of balancing energy security with the global shift toward cleaner fuels. “Energy security has become as important as energy transition," he said, pointing to geopolitical tensions in the Middle East and disruptions to LNG supply chains through the Strait of Hormuz that exposed vulnerabilities in global energy markets.
“The resulting volatility in LNG prices, freight rates and supply availability reinforced the need for diversified sourcing, resilient infrastructure and flexible supply chains," he said, adding “At the same time, the global transition towards cleaner energy continued unabated, with sustained investments in renewable energy, nuclear power, energy storage and low-carbon technologies.”
Gupta said the company's pipeline network, already India's largest natural gas transmission system, has expanded to more than 18,690 kilometres, with another 1,500 km under construction. “Once those projects are completed, the network is expected to approach 20,000 km,” he said.
Gail is simultaneously expanding its LPG transmission business. The company is doubling the capacity of its 1,427-km Jamnagar-Loni LPG pipeline to 6.5 MMTPA from 3.25 MMTPA. The Petroleum and Natural Gas Regulatory Board has also authorised GAIL to develop three LPG pipelines with a combined length of about 1,775 km.
In petrochemicals, GAIL commissioned a 60,000-tonne-a-year polypropylene unit at Pata, raising the integrated complex's capacity to 870,000 tonnes from 810,000 tonnes. The company is also progressing with its 500,000-tonne-a-year propane dehydrogenation-polypropylene project at Usar, which Gupta described as India's first PDH-based polypropylene complex. The project entails an estimated investment of about Rs 11,256 crore.
At Mangalore, work is progressing on a 1.25 MMTPA purified terephthalic acid (PTA) plant, giving GAIL an entry into another petrochemical value chain. “These investments in petrochemicals are not simply about adding capacity," he said. They are about developing a more diversified downstream business and strengthening the growth of Gail's petrochemical portfolio,” he said.
Besides, Gail is also moving into large-scale gas-based fertiliser manufacturing. Its board has given in-principle approval for investments in two fertiliser plants in Maharashtra and Chhattisgarh, with combined investment of about Rs 21,000 crore.
“The projects are expected to create additional demand for natural gas and support regional development while contributing to India's food-security objectives,” Gupta said.
