GAIL, India’s leading gas marketing and transportation firm, is set to invest Rs 30,000 crore ($4.1 billion) in expanding its petrochemical capacity and exploring global liquefied natural gas (LNG) supplies. The company’s chairman, Sandeep Kumar Gupta, announced this plan during GAIL’s annual shareholders’ meeting.
The investment will be made over the next three years, with a focus on various projects including pipelines, ongoing petrochemical initiatives, operational expenses, equity contributions in group companies, and city gas distribution (CGD) projects. GAIL aims to strengthen its infrastructure across the nation and further cement its position in the market.
GAIL currently operates a pipeline network spanning 15,600 kilometers, and with an additional 4,200 kilometers under construction, it is projected to complete around 20,000 kilometers of the national gas grid by the end of next year. In addition, the company has secured the license to build and operate the 160-kilometer Gurdaspur-Jammu natural gas pipeline, which will provide access to natural gas in the northern and northeastern parts of the country through the Barauni-Guwahati pipeline.
With the growing demand for petrochemicals, Gupta highlighted that India is expected to contribute over 10% of the global growth in petrochemicals over the next decade. To capitalize on this opportunity, GAIL recently acquired JBF Petrochemicals Ltd, a private-sector chemical company that adds 1.25 million tonnes of petrochemical capacity to GAIL’s portfolio. This acquisition also allows GAIL to introduce a new product, purified terephthalic acid (PTA), in addition to its existing offerings.
Furthermore, GAIL is currently implementing a propane dehydrogenation polypropylene (PP) plant with an annual capacity of 500,000 tonnes at Usar, as well as a 60,000-tonne polypropylene unit at Pata. The company is also setting up its first specialty chemical plant in Maharashtra, with a capacity of 50,000 tonnes of isopropyl alcohol (IPA). These additions will significantly enhance GAIL’s petrochemicals and chemicals portfolio to reach a total of 3 million tonnes per annum.
To support its future growth, GAIL is exploring opportunities for ethane sourcing for its existing petrochemical plant and studying the prospects of setting up an ethane cracker. Additionally, the company is actively seeking long-term LNG sourcing opportunities in collaboration with major global LNG players.
GAIL’s expansion plans align with India’s strategic objective to enhance its domestic petrochemical production and ensure a reliable supply of energy resources. The investments will not only contribute to the country’s economic growth but also facilitate the transition to cleaner energy alternatives such as LNG for transportation fuel.
As GAIL embarks on this ambitious expansion journey, it is well-positioned to strengthen its market dominance in the gas industry and contribute significantly to India’s overall growth and development.
