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Gail Gas Pipeline Expansion Continues

Gail Gas Pipeline Expansion Continues


Gail Gas Pipeline Expansion Continues

Gas Authority of India Limited is now known by the name of Gail India Limited (GAIL). It is the leading natural gas processing and distribution company owned by the state, in India. It has it’s headquartered in Delhi. It is into different segments of business such as petrochemical, natural gas, liquefied petroleum gas transmission, exploration and production, liquid hydrocarbon, electricity generation, city gas distribution, and GAILTEL. It is one of the most trusted brands in India and a maharatna company. It comes under the Ministry of Petroleum & Natural Gas (MoP&NG). In the year 1984, it was incorporated as a Public Sector Undertaking. It is having around 5 subsidiaries and also having many joint ventures with different PSU’s.

How GAIL is reaching their aim to expand?

Gail India Limited is trying to expand itself by increasing its pipeline capacity by around 50 percent. This they are planning to do within a span of 3 years. Their main aim is to add the pipeline of 5,500 km gas along with the existing pipeline. By adding this 5,500 km of gas pipelines the capacity would be increased approximately to 50 percent. This was told by its Managing Director and Chairman, BC Tripathi in the 34th company’s Annual General Meeting. At present they are operating 11,000 km of gas pipeline and it’s production two third is being consumed in the country itself.

Their first aim is to build a 2,655 km of gas pipeline starting from Jagdishpur in Uttar Pradesh to Bengal as well as Odisha. The target to complete the first aim is around December this year. The next pipeline would start from Patna and would be extended till Guwahati, which going to build around 1,500 km and known by the name of Indradhanush pipeline. It would be operated through public sector undertaking in the field of gas and oil. The main aim of GAIL behind this is that India should become independent for the increasing demand, for natural gas. It is required by them for cooking fuel as well as transport. With the increase of production major portion of demand by the country would be satisfied by this. In the financial year of 2017 to 2018, they had established around 120 of CNG stations with 5 lakh PNG connections in the households for cooking. Now they are looking for setting around 400 of CNG stations with 10 lakh PNG connections to households.

India’s Share in Natural Gas

India wants and in process of increasing, natural gas share in the segment of energy to about 15 percent within next few years. At present this is about 6.5 percent share of natural gas, which being the third largest oil importer. They had also subscribed for investment in equity, approximately 14.3 percent in Ramagundan, urea fertilizer unit. It produces around 12.7 million tonnes in a year. They would supply natural gas to them from the 2019-20 financial year onwards. Necessary documentation related to this agreement has already been executed.

GAIL is trying to expand as currently their marketing portfolio for gas is approximately 14 million tonnes as told by Mr. BC Tripathi.

Disclaimer: The views and opinions expressed in this article are those of the author(s) and do not reflect the official position of Article had been published on as-is basis and does not assume any responsibility or liability for any information(s) on this article.

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