GAIL plans for Natural Gas Pipeline Expansion to scale-up Petrochemicals and LNG Infrastructure
As geopolitical disruptions highlight the need for greater energy security, state-owned gas utility GAIL (India) Ltd intends to expand its natural gas pipeline network, diversify LNG sourcing and shipping, scale up petrochemicals and LPG infrastructure, and invest in clean-energy technologies, according to the company's chairman on Thursday.
Speaking at GAIL's 42nd annual general meeting, Deepak Gupta stated that 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, citing Middle Eastern geopolitical tensions and disruptions in LNG supply chains through the Strait of Hormuz as examples of global energy market vulnerabilities.
"The resulting volatility in LNG prices, freight rates, and supply availability highlighted the importance of diverse sourcing, resilient infrastructure, and flexible supply chains," he stated.
"At the same time, the global transition to cleaner energy continued apace, with sustained investments in renewable energy, nuclear power, energy storage, and low-carbon technologies." He predicted that natural gas would continue to play a role in the energy transition due to its flexibility and low carbon intensity.
Further Expansion Plans:
GAIL is also expanding its LPG transmission business. The company is increasing the capacity of its 1,427-kilometer Jamnagar-Loni LPG pipeline to 6.5 MMTPA from 3.25 MMTPA. The Petroleum and Natural Gas Regulatory Board has also approved GAIL's plans to build three LPG pipelines totaling approximately 1,775 kilometers.
GAIL is also expanding into large-scale gas-based fertilizer manufacturing. Its board has given in-principle approval for investments in two fertilizer plants in Maharashtra and Chhattisgarh, totaling approximately Rs 21,000 crore.
The projects are expected to increase demand for natural gas, promote regional development, and contribute to India's food security goals.
GAIL has also expanded its shipping capabilities by signing long-term charter agreements for the GAIL Bhuwan, which has a capacity of 180,000 cubic meters, and the Energy Fidelity, which has a capacity of 174,000 cubic meters, he said. The company now has access to nine LNG vessels, five of which are under long-term charter arrangements, according to the chairman.