The Blue Flame Expansion: GAIL’s ₹10k Cr Annual Plan

GAIL (India) Ltd is looking to strengthen its long-term liquefied natural gas (LNG) sourcing strategy while planning to invest around ₹10,000 crore annually in pipeline infrastructure to meet the anticipated rise in India’s natural gas demand over the next five years.

The company is expanding its gas procurement portfolio as industrial growth, the expansion of city gas distribution networks, and improved price competitiveness drive higher consumption. According to an independent demand study by the Petroleum and Natural Gas Regulatory Board (PNGRB), India’s gas demand could reach 297 million standard cubic metres per day (mmscmd) by 2030 under a conservative scenario and up to 365 mmscmd in an accelerated growth case. GAIL Director (Finance) Rakesh Kumar Jain noted that even the base scenario suggests nearly a 50% increase in demand from current levels.

To prepare for this growth, GAIL plans to expand its LNG portfolio from the current 16.5 million tonnes per annum (MTPA) by an additional 5–7 MTPA by 2030, while continuing to strengthen pipeline connectivity across the national gas grid.

News by Rahul Yelligetti.