The Chairman of GAIL stated on Thursday that the state-owned gas utility company GAIL (India) Ltd intends to expand its natural gas pipeline network, diversify LNG sourcing and transportation, increase petrochemical and liquefied petroleum gas (LPG) infrastructure, and invest in clean energy technologies. These steps are driven by geopolitical upheavals highlighting the need to enhance energy security.
Speaking at GAIL's 42nd Annual General Meeting, Dipak Gupta noted that the past year demonstrated the growing importance of balancing energy security with the global transition to cleaner fuel sources.
He emphasized that 'energy security has become as important as the energy transition,' citing geopolitical tensions in the Middle East and disruptions in LNG supply chains through the Strait of Hormuz, which exposed vulnerabilities in global energy markets. Gupta added that volatility in LNG prices, freight rates, and supply availability increased the need for diversified sources, resilient infrastructure, and flexible supply chains.
Concurrently, the global shift towards cleaner energy continued unabated, accompanied by continuous investments in renewable energy, nuclear power, energy storage, and low-carbon technologies. In Gupta's view, natural gas will retain its role in the energy transition due to its flexibility and lower carbon intensity.
The company's pipeline network, which is India's largest natural gas transmission system, has been expanded to over 18,690 kilometers, with another 1,500 km under construction. Upon completion of these projects, the total network length is expected to approach 20,000 km.
In parallel, GAIL is growing its LPG transmission business. The company is doubling the capacity of its 1,427-kilometer Jamnagar-Loni pipeline for LPG, increasing it from 3.25 million tonnes per annum to 6.5 million tonnes per annum. Furthermore, the Petroleum and Natural Gas Regulatory Board has granted GAIL permission to develop three LPG pipelines totaling approximately 1,775 km.
In the petrochemical sector, GAIL commissioned a 60,000 tonnes per annum polypropylene plant in Pate, increasing the integrated complex's capacity from 810,000 tonnes to 870,000 tonnes. The company is also advancing the propane dehydrogenation and 500,000 tonnes per annum polypropylene production project in Usar, which Gupta called the first PDH-based complex in India. This project requires an investment of about 11,256 crore rupees. Work is underway in Mangalore on a 1.25 million tonnes per annum purified terephthalic acid (PTA) plant, which will allow GAIL to enter another value chain in petrochemicals.
Gupta explained that these petrochemical investments are aimed not just at increasing capacity but at forming a more diversified business direction and strengthening GAIL's petrochemical portfolio. GAIL is also entering the large-scale production market for gas-based fertilizers. The company's board has approved in principle investments in two fertilizer plants in Maharashtra and Chhattisgarh with a total outlay of about 21,000 crore rupees. These projects are expected to create additional demand for natural gas and support regional development, contributing to India's food security goals.
Regarding LNG procurement, GAIL's portfolio stands at 16.56 million tonnes per annum (MMTPA), which includes long-term contracts and market-linked purchases. In fiscal year 2025-26, the company imported 132 cargoes of LNG, including seven spot cargoes, aiming to maintain supplies to priority customers amid international market volatility.
GAIL has also expanded its shipping capabilities by signing long-term charter agreements for the vessels GAIL Bhuwan (capacity 180,000 cubic meters) and Energy Fidelity (capacity 174,000 cubic meters). According to the Chairman, the company now has access to nine LNG vessels, five of which are under long-term lease.
The company's international operations are also expanding. GAIL Global (USA) LNG LLC supports the portfolio of LNG procurement and liquefaction in the USA, while GAIL Global (Singapore) Pte Ltd focuses on developing international LNG trade and global business. Additionally, GAIL established GAIL Global IFSC Ltd. in the Gujarat International Finance Tec-City (GIFT City) to support treasury management and explore opportunities in international financial services and vessel leasing.
It was noted that the Dabhol LNG terminal achieved year-round operational status after the completion of the breakwater and received its first LNG cargo during the monsoon season. Over the year, the terminal also received its thousandth LNG cargo. The GAIL board approved the merger scheme of Konkan LNG Ltd with GAIL, subject to applicable procedures, to ensure closer operational and strategic integration.