GAIL Ltd. has announced an investment strategy of Rs 300 billion to facilitate future expansion.
The company's total capital expenditure for FY23 stood at Rs 100 billion, and its FY24 estimated capex stands at Rs 120 billion.
"We are targeting to incur a capex of Rs 300 billion in the next three years, mainly on pipelines, ongoing petrochemical projects, CGD projects, operational capex, equity contributions in group companies, etc.," said Sandeep Kumar Gupta, chairman and managing director at Gail, at the company's 39th Annual General Meeting held last month.
The company currently has 15,600 kilometres of pipelines under operation and 4,200 kilometres of pipelines under construction. It will complete 20,000 kilometres of the National Gas Grid in the next calendar year, said Gupta.
The company has commissioned the Dhamra-Angul Mainline with spur lines to Jamshedpur, Ranchi, Cuttack, and Bhubaneshwar. This enables the company’s regasified liquefied natural gas supply from the Dhamra LNG terminal and adds one major gas source to its pipeline network on the east coast.
The company has also won the licence to build, operate, or expand a 160-kilometre natural gas pipeline—the Gurdaspur-Jammu Natural Gas Pipeline—at the recent bidding of the Petroleum and Natural Gas Regulatory Board. With this, GAIL will enable access to natural gas in the northern and northeastern parts of the country.
GAIL’s acquisition of the 1.25 MMTPA PTA plant of erstwhile JBF Petrochemical Ltd. offers the company an opportunity to add a new chemical product—purified terephthalic acid—to GAIL’s existing product portfolio, said Gupta.
The company is also implementing the country’s first propane dehydrogenation PP plant, with a capacity of 5,00,000 tonne per annum, and a 60 KTA polypropylene plant.
It is also setting up its first specialty chemical plant for isopropyl alcohol, with a capacity of 60 KTA. These additions will bring the company’s portfolio of petrochemicals to 3 million metric tonnes per year, according to Gupta.