New Delhi: State-owned Gail India plans a capital expenditure of ₹30,000 crore, mainly in pipelines, petrochemical projects and city gas distribution, over the next three years. The company’s total capital expenditure for FY23 was ₹10,000 crore.
“Company is growing steadily and creating infrastructure facilities across the nation. We are targeting to incur a capex ₹30,000 crore in the next 3 years, mainly on pipelines, ongoing petrochemical projects, CGD projects, operational capex, equity contribution in group companies etc,” said Gail CMD Sandeep Kumar Gupta while addressing the shareholders at the annual general meeting (AGM).
Gupta also said that the company has been trying to secure natural gas for the country and the consumers.
“Your company has issued an EoI to explore opportunity of equity acquisition in LNG liquefaction terminal along with 1 MMTPA LNG tie-up from USA,” he said.
The CMD also said that Gail has taken steps to provide tie-in connections with its natural gas pipelines to the upcoming new gas sources and upcoming RLNG terminals to enable more and new gas injections into its pipelines.
Referring to the supply issues amid the Russia-Ukraine war, he noted that the year 2022 witnessed extreme volatility and shift in geopolitical dynamics which affected the world’s energy ecosystem, resulting in a difficult year for the global natural gas market witnessing significant ups and downs.
“Gail did not remain unaffected as we suffered supply disruptions in one of our long-term LNG sourcing contracts, coupled with reduced allocation of domestic gas for processing plants and a record spike in global LNG prices. However, our resilience and expertise helped in effectively managing this crisis,” he said.
The statement gains significance as contracted LNG volumes from a former unit of Russia’s Gazprom was not supplied to GAIL for several months as spot prices were much higher making the Gazprom unit sell its produce in spot market.
The supplies under the contract, however, have resumed this year.
The CMD further said that Gail achieved a gross turnover of ₹1.43 trillion in the last fiscal, an increase of 57% over the previous year.
“Gas transmission and gas marketing are the key drivers of GAIL’s business and during FY 23, we transmitted 107 MMSCMD of natural gas, marketed 95 MMSCMD of natural gas and sold 399 TMT of polymer.”
Noting that the current year seems “more promising”, he said it is estimated that GAIL would achieve over 120 mmscmd of natural gas transmission, over 100 mmscmd of natural gas sales and 800 TMT of polymer sales.
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Updated: 23 Aug 2023, 03:38 PM IST
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