GAIL Eyes Stake in US LNG Projects

GAIL Eyes Stake in US LNG Projects

GAIL, the state-run utility, is actively searching for opportunities to secure a stake in LNG (liquefied natural gas) projects in the United States and enter long-term supply agreements. The company anticipates increased gas transmission volumes due to the expansion of its pipeline network. GAIL plans to allocate Rs 30,000 crore for pipeline expansion, city gas network expansion, and petrochemicals capacity expansion over the next three years, as shared by Chairman Sandeep Kumar Gupta during a shareholder meeting. In collaboration with Greenline, a company backed by Essar group’s venture capital arm Exponentia Ventures, GAIL is exploring the use of LNG as fuel for heavy-duty commercial vehicles. The company has issued expressions of interest (EoI) for acquiring equity in an LNG liquefaction terminal, with an annual capacity of around one million tonnes, in the US. Talks are currently underway with major suppliers for long-term contracts. GAIL is also integrating gas from new fields and forthcoming LNG import terminals into its pipeline network. Gupta believes that India’s rising domestic demand will contribute to 10% of the global growth in petrochemicals over the next decade. In recent news, GAIL acquired JBF Petrochemicals Ltd through the insolvency process and infused Rs 2,100 crore into the troubled company. Moreover, GAIL is setting up its initial specialty chemicals plant in Usar, Maharashtra, with an aim to produce 50,000 tonnes of isopropyl alcohol. These strategic investments and expansions will enable GAIL to enhance its product portfolio and strengthen its position in the market.

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TIS Staff

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