GAIL (India) Limited is solidifying its position as a key player in the Indian petrochemical industry by establishing a diverse range of product offerings. “GAIL’s 500 KTA PDHPP Project at Usar, 60 KTA Poly-propylene plant at Pata, 1,250 KTA PTA plant at GMPL, Mangaluru and 50 KTA Isopropyl Alcohol (IPA) Project at Usar will diversify and expand GAIL’s existing petrochemical portfolio and provide robust growth in years to come. GAIL is also exploring the feasibility of setting up a world scale greenfield ethane cracker,” Sandeep Kumar Gupta, Chairman & Managing Director, GAIL (India) said while addressing shareholders at the 40^th AGM of the company.

Gupta also said that GAIL’s petrochemical business has started indicating a positive turnaround. During FY 2024, GAIL’s overall production of petrochemicals surged by 76% to 777 TMT, compared to 442 TMT in FY 2023 and sales of petrochemicals increased by 97% to 787 TMT, compared to 399 TMT in the FY 2023. Revenue from Operations from this segment rose by 58% to Rs. 7,753 crore, compared to Rs. 4,917 crore in FY 2023.

GAIL has been actively involved in exploring ways to integrate sustainable business practices while minimizing energy usage. “With that in mind, your Board has sanctioned the laying of C2/C3 liquid pipeline, which will directly transport these hydrocarbons extracted at Vijaipur to Pata, having an estimated Project Cost of Rs. 1,792 crore with a commissioning period of 32 months,” he added.

GAIL (India) Limited’s financial performance in FY 24 was indeed stellar. The company reported Profit before Tax (PBT) of Rs. 11,555 crore in FY 24, up by 75 % from Rs. 6,584 crore in FY 23. Profit after Tax (PAT) in FY 24 stood at Rs. 8,836 crore as against Rs. 5,302 crore in FY 23, an increase of 67 %, while Revenue from Operations stood at Rs. 1,30,638 crore in FY 24 as against Rs, 1,44,302 crore in FY 23. During the year your Company also achieved the highest ever capex of Rs. 11,426 crore. The market capitalisation of your Company reached Rs. 1,61,944 crore, @ Rs. 246.30 per shares on NSE as on 31st July 24. 

On the physical front, with an existing network of 16,271 km of natural gas pipelines, GAIL has been at the forefront of laying Natural Gas Pipelines and is actively working on laying approximately 3,400 km of new natural gas pipelines across the country. Persistent efforts have been made towards completing the National Gas Grid (NGG), which is essential for India's energy security and achieving a gas-based economy. GAIL has maintained nearly 100 % availability of its pipeline network while ensuring gas supply to customers nationwide.

As a leading natural gas player, GAIL recognises the importance of ensuring supply security. In this direction, GAIL has signed two 10-year LNG supply agreements, starting in 2026: 1 MMTPA from Vitol Asia Pte Ltd, Singapore and 0.5 MMTPA from ADNOC Gas, UAE. Additionally, GAIL’s volume of 4.5 MMTPA is now renewed under LNG SPA signed between Qatar Energy LNG and PLL, with supplies commencing in 2028 for a period of 20 years.

GAIL has also successfully on-boarded and chartered the long-term LNG vessel, GAIL Urja, and has entered into a 14-year Time Charter Party agreement for a newly built LNG carrier. The time charter for this LNG carrier will begin in early 2025. GAIL's fleet of five LNG carriers will enable the Company to meet the requirement of transporting contracted LNG volumes to India.

GAIL R&D has awarded 4 numbers of new projects in the thrust areas of pipeline integrity management, catalyst development for SNG, PEM water electrolysers & fuel cells. “I am glad to share that GAIL has also been granted 12 numbers of Indian patents taking the total to 31 Indian Patents. Going forward, your Company has decided to set up its own R&D centre and progress in this regard is being made as per laid roadmap,” Gupta said.

Besides the Talcher Fertiliser Project going on, your Company is also working on feasibility of another coal gasification project in a Joint Venture with Coal India Ltd. to produce Synthetic Natural Gas. Both the Companies have signed Joint Venture Agreement on 05.08.2024 for setting up of the Project at Eastern Coal Field (ECL), Bardhaman, West Bengal.

GAIL is conscious of the fact that future business growth entails sustainable business practices and decarbonization measures. The company is well-positioned to become a leader in the energy transition and GAIL’s Board has approved the advancement of the Net Zero target by five years from earlier 2040 to 2035, to achieve 100% reduction in Scope 1& Scope 2 emissions along with the revised roadmap to achieve the same.

Advancing its endeavours to reduce its carbon footprint, GAIL has installed the country’s first MW scale Green Hydrogen electrolyser in Vijaipur, Madhya Pradesh. The 10 MW electrolyser has a capacity of producing 4.3 TPD of Hydrogen through electrolysis using renewable power.

GAIL is also working on setting up of 500 Kilo Litres per day 1G ethanol plant and collaborating with industry leaders in the field of CO2 valorization to reduce the carbon footprint at its installations. Additionally, the feasibility of building/ expanding natural gas and LPG pipelines is also underway.