GAIL Goes Big: ₹30,000 Crore Push for Petrochemicals & LNG

Gas Authority of India (GAIL) is embarking on a robust investment plan, allocating Rs 30,000 crore over the next three years to bolster its petrochemical capacity and secure international LNG supplies.

The investment will primarily target pipeline infrastructure, ongoing petrochemical ventures, city gas distribution (CGD) projects, operational expenditures, equity contributions in affiliated companies, and other strategic initiatives. Notably, GAIL is eyeing the utilization of liquefied natural gas (LNG) as a viable transport fuel.

With an extensive operational pipeline network spanning 15,600 kilometers and an additional 4,200 kilometers under construction, GAIL is poised to augment the national gas grid by completing approximately 20,000 kilometers within the upcoming year.

Moreover, GAIL has secured the license to construct and operate the 160-kilometer Gurdaspur-Jammu natural gas pipeline, which will facilitate access to natural gas in the northern and north-eastern regions of India, complementing the Barauni-Guwahati pipeline (BGPL) section as part of the Jagdishpur-Haldia & Bokaro-Dhamra Pipeline (JHBDPL) project.

In a strategic move, GAIL recently acquired JBF Petrochemicals, a private-sector chemical company, augmenting its petrochemical capacity by 1.25 million metric tons (MT) and diversifying its product portfolio with purified terephthalic acid (PTA). Additionally, GAIL is advancing with the implementation of a 500,000 metric ton per annum (tpa) propane dehydrogenation PP plant at Usar and a 60,000-ton polypropylene facility at Pata.

Further reinforcing its presence in the chemical industry, GAIL is establishing its inaugural specialty chemical plant with a capacity of 50,000 tonnes of isopropyl alcohol (IPA) at Usar, Maharashtra. These expansions are set to elevate GAIL's petrochemical/chemicals portfolio to three million tpa. The company is also evaluating opportunities for ethane sourcing to enhance its existing petrochemical operations and exploring the feasibility of setting up an ethane cracker.

In line with its strategic vision, GAIL is actively engaging with major global LNG players to secure long-term sourcing agreements. Furthermore, under its Strategy 2030 framework, GAIL is committed to bolstering its renewable energy portfolio through organic and inorganic means, exploring avenues such as solar, biofuels, compressed bio-gas, carbon capture utilization and storage (CCUS), and green hydrogen.

News by Rahul Yelligetti