GAIL to invest Rs 45,000 crore in expansion of pipelines, city gas network

Gail India Ltd, a state-owned gas utility plans to invest over Rs 45,000 crore (US$ 6.25 billion) over the next five years to develop the National Gas Grid and city gas distribution network.

According to chairman Mr Ashutosh Karnatak, at present, the company is growing its natural gas pipeline network by completing more than 5,700 kilometres of major projects.

GAIL presently operates 11,000-km of pipeline network and markets two-thirds of all-natural gas sold in the country. 

Investments that are worth over Rs 45,000 crore (US$ 6.25 billion) are envisioned in coming few years, across major cross-country pipeline projects along Urja Ganga Project, Koch-Kootanad-Bangalore-Mangalore, Indradhanush North East Gas Grid and further crucial pipelines connecting supply and demand centres envisaged under the National Gas Grid.

Out of total investment, Rs 32,000 crore (US$ 4.44 billion) would be utilised into pipeline laying and another Rs 12,000 crore (US$ 1.66 billion) in city gas distribution (CGD) networks for retailing of CNG to automobiles and piped natural gas to household kitchens. Investments would also go into the development of petrochemical plants. 
GAIL is currently handling up to 400 CNG stations and give out a record 10 lakh piped natural gas (PNG) connections to household kitchens in the next 3-5 years. 

It is quickly developing infrastructure to help the government boost a gas-based economy by increasing the share of natural gas in the energy basket to 15 per cent by 2030 from current 6.2 per cent. 
The company is constructing a 2,655-km gas pipeline from Jagdishpur in Uttar Pradesh to West Bengal and Odisha. 
 
'Pradhan Mantri Urja Ganga' project also known as Jagdishpur-Haldia & Bokaro-Dhamra Natural Gas Pipeline (JHBDPL) project, was launched by Prime Minister Narendra Modi in July 2015. 

The pipeline would be expanded to Guwahati by laying an additional 750-km line. At Guwahati, it would relate to the forthcoming 1,500-km 'Indradhanush' pipeline network created to operate in northeast by the public sector oil and gas majors. 

Karnatak said the company's board has authorised the utilisation of active assets and premises of LPG plant at Usar in Maharasthra by transforming it into 500,000 tonnes polypropylene complex at an investment of around Rs 8,800 crore.

This is one of the first kind project in India. GAIL Board has also accepted setting up of 60,000 tones polypropylene unit at the current petrochemical facility at Pata in Uttar Pradesh.

Polypropylene is utilised in a range of applications, including packaging of consumer products, plastic parts of various industries including the automotive industry, special devices like living hinges, and textiles. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.