GAIL (India) Ltd, the country’s premier gas marketing and transportation company, has announced a substantial investment of ₹30,000 crore over the next three years. This move comes as the company seeks to expand its petrochemical capacity, secure global liquefied natural gas (LNG) supplies, and advance its commitment to sustainable energy solutions.
GAIL’s Chairman, Sandeep Kumar Gupta, revealed the investment plan during the company’s annual shareholders meeting. Gupta highlighted that the company is strategically positioning itself for growth by focusing on a range of key initiatives, including pipelines, petrochemical projects, city gas distribution (CGD) projects, operational capital expenditures, and equity contributions in group companies.
The investment comes on the heels of a ₹10,000 crore capital expenditure in the fiscal year 2022-23 (April 2022 to March 2023). Gupta emphasized GAIL’s role in expanding the national gas grid, with around 20,000 kilometres of pipelines projected to be completed in the upcoming calendar year. The recent acquisition of the Gurdaspur-Jammu natural gas pipeline license will further extend GAIL’s reach to northern and northeastern parts of the country.
With India’s increasing demand for petrochemical products, Gupta projected that the country will contribute over 10% of the global growth in petrochemicals over the next decade. GAIL’s recent acquisition of JBF Petrochemicals Ltd has added 1.25 million tonnes of petrochemical capacity to its portfolio, including the production of purified terephthalic acid (PTA). Additionally, the company is implementing a propane dehydrogenation polypropylene plant and is setting up a specialty chemical plant for isopropyl alcohol.
GAIL’s growth strategy also includes a focus on renewable energy. The company is establishing a 10 MW green hydrogen production unit, anticipated to be the largest in India, with commissioning expected by December 2023. Gupta shared that GAIL is exploring various opportunities in solar energy, biofuels, compressed bio-gas, carbon capture utilization and storage (CCUS), and green hydrogen to contribute to a net-zero future.
Innovating for a cleaner transportation future, GAIL is collaborating with various partners, including Essar-promoted GreenLine. GreenLine operates India’s largest LNG-powered fleet of heavy commercial vehicles, which substantially reduces emissions compared to diesel. The company’s LNG-powered fleet has garnered the support of prominent corporations like Tata Steel, Reliance Industries, and Nestle in their efforts to decarbonize their logistics operations.
GAIL’s Chairman emphasized the company’s commitment to sustainability and its ambition to develop new markets while increasing the consumption of natural gas in the country. This includes a focus on retail LNG networks, LNG dispensing stations, and small-scale LNG infrastructure.
