GAIL to Capitalise on India's Growing Gas Demand

GAIL India is looking to cement its position in gas business by booking capacities in the existing LNG terminals and striking deals with overseas gas sources, according to financial newspaper Business Line.

The move comes amid rising dependence on imported natural gas in India.

B. C. Tripathi, Chairman and Managing Director, speaking to the company’s shareholders at the 29th Annual General Meeting on Wednesday, said his company has entered into an understanding with Petronet LNG for reserving 2.5 million tonnes annually exclusive capacity in the planned expansion of Dahej LNG terminal to meet the demand, Business Line reported.

Petronet is expanding Dahej terminal’s capacity by another five mt that will take the total capacity to 15 mt, the newspaper added.

According to Tripathi, the company also plans to venture in LNG shipping to bring the contracted gas to India. It has signed a memorandum of understanding with Shipping of Corporation India Ltd to co-operate for transportation of LNG sourced by GAIL from the US.

The key growth areas for the company, according to Tripathi, will be upstream (exploration & production), midstream (pipelines) and downstream (petrochemicals). Focus will also remain on maintaining leadership position in domestic gas and petrochemical businesses, he said. 

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