Gail to Increase Pipeline Capacity by Half

India’s biggest gas transportation and marketing firm Gail plans to boost its gas pipeline capacity by over 50% in the next three years, chairman BC Tripathi said September 11 in New Delhi during its annual general meeting (AGM). It will add 5,500 km of pipeline in phases over the said period.

Gail is moving ahead with the ambitious $2bn Jagadishpur-Haldia-Bokaro-Dhamra Natural Gas Pipeline (JHBDPL) also known as Pradhan Mantri Urja Ganga. This 2,539-km pipeline is expected to be fully completed by December 2020. The first phase of the pipeline will be complete by end-2018 and the second phase by end-2019.

“l am happy to share with you that the prestigious gas transmission project Pradhan Mantri Urja Ganga is progressing as per schedule as concurrent work across various sections is underway at a brisk pace,” Tripathi said during the AGM. The pipeline will supply natural gas to fertiliser plants, power plant, refineries, steel plants and other industries, as well as households and vehicles in cities along the pipeline.

Tripathi said Gail will expand in the city gas distribution (CGD) segment too adding that, in the latest CGD bidding round that ended last month, Gail affiliates won rights to operate CGD network in 15 areas.

“The LNG tie-ups with USA and Russian entities has not just taken the scale of gas marketing operations up by a few notches but, have added experience and managerial bandwidth in operating LNG ships on charter-hire, trading in international markets for opportunity based and portfolio optimisation plays as also in exploring innovative contractual measures that create value for stakeholders and shareholders.”

Gail received its first Gazprom cargo June 4 aboard LNG Kano under a long-term deal at Petronet’s Dahej terminal in the state of Gujarat, having earlier received its maiden US LNG cargo in March.