GAIL (India) Ltd. Eyes Expansion with New Ethane Cracker, LNG Deals, and Net Zero Target

GAIL (India) Ltd. held its 40th Annual General Meeting where Chairman Sandeep Kumar Gupta announced plans to explore a new ethane cracker facility and detailed various expansions in their pipeline network and petrochemical offerings. Gupta also highlighted GAIL's LNG supply deals, JV acquisitions, and advancements in achieving Net Zero emissions by 2035.

GAIL (India) Ltd. hosted its 40th Annual General Meeting (AGM) for the fiscal year 2023-24, where Chairman Sandeep Kumar Gupta revealed plans to explore the feasibility of setting up a world-scale greenfield ethane cracker. This move reflects GAIL's confidence in the growth of its petrochemical sector and its ambition to solidify its position as a key player in India's petrochemical industry with a diverse range of products.

Gupta highlighted ongoing projects including the 500 KTA PDHPP Project at Usar, a 60 KTA Poly-propylene plant at Pata, a 1,250 KTA PTA plant at GMPL, Mangaluru, and a 50 KTA Isopropyl Alcohol Project at Usar. These projects are set to diversify and expand GAIL's petrochemical portfolio. Further, GAIL continues to maintain its leadership in the natural gas sector, operating a network of 16,271 km of natural gas pipelines and actively working on approximately 3,400 km of new pipelines to complete the National Gas Grid (NGG).

On the supply front, Gupta announced the signing of two 10-year LNG supply agreements starting in 2026, with 1 MMTPA from Vitol Asia Pte Ltd, Singapore, and 0.5 MMTPA from ADNOC Gas, UAE. Additionally, GAIL's volume of 4.5 MMTPA has been renewed under a new LNG SPA with Qatar Energy LNG, set to begin in 2028. The company also chartered a long-term LNG vessel, GAIL Urja, under a 14-year Time Charter Party agreement starting in early 2025, with a fleet of five LNG carriers to ensure secure LNG transport.

Gupta stated that GAIL's joint venture company, Mahanagar Gas Limited, has expanded by acquiring new geographical areas in Maharashtra and Karnataka, positioning GAIL as the largest City Gas Distribution operator in India. As of this year, GAIL and its group companies have added over 1.1 million PNG connections and 422 CNG stations, totaling approximately 8.34 million PNG customers and 2,770 CNG stations nationwide.

Gupta also emphasized GAIL's advancement in achieving its Net Zero target, which has been moved forward by five years to 2035. The company's commitment includes reducing Scope 1 & Scope 2 emissions by 100%. To further their environmental goals, GAIL installed India's first MW scale Green Hydrogen electrolyzer in Vijaipur, Madhya Pradesh, with a 10 MW capacity capable of producing 4.3 TPD of Hydrogen using renewable energy.

(With inputs from agencies.)