GAIL plans major expansion in gas, petrochemicals and clean energy, says chairman

State-run gas utility 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. “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.”

Natural gas, because of its flexibility and lower carbon intensity, would continue to play a role in the energy transition, he said.

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.

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.