‘GAIL to begin LNG imports under new pacts from ‘26, adds 1 new ship’
New Delhi: State-owned gas utility GAIL (India) Ltd will start importing LNG under two new contracts from 2026 and has added one more ship to transport the fuel, its Chairman Sandeep Kumar Gupta said on Wednesday.
The company had in January this year signed back-to-back deals to import liquefied natural gas (LNG). It first signed deal to import 1 million tonnes of LNG from Dutch energy trader Vitol for 10 years and then another agreement to buy 0.5 million tonne per annum of LNG from UAE’s ADNOC-Gas.
GAIL conducted its 40th Annual General Meeting (AGM) for the fiscal year 2023-24 today, with shareholders and stakeholders participating through a virtual platform for the fifth consecutive year. The meeting, presided over by the Chairman, highlighted GAIL’s robust financial performance, significant operational achievements, and its unwavering commitment to sustainable energy practices. The Chairman announced that GAIL had achieved outstanding financial results during FY 2023-24. The company reported a Profit Before Tax (PBT) of Rs 11,555 crore, reflecting a 75 per cent increase from Rs 6,584 crore in FY 2022-23. The Profit After Tax (PAT) surged by 67 per cent to Rs 8,836 crore, compared to Rs 5,302 crore in the previous fiscal year. Although the Revenue from Operations saw a slight decrease to Rs 1,30,638 crore from Rs 1,44,302 crore, the company achieved its highest-ever capital expenditure (capex) of Rs 11,426 crore.
The market capitalization of GAIL reached an impressive Rs 1,61,944 crore, with a per-share price of Rs 246.30 on the NSE as of July 31, 2024. These achievements were realized despite the uncertain business environment across all verticals, underscoring GAIL’s resilience and strategic foresight.
On the operational front, GAIL has maintained its leadership in natural gas transmission and infrastructure development. With an existing network of 16,271 km of natural gas pipelines, the company is actively working on expanding this network by approximately 3,400 km. The completion of the National Gas Grid (NGG) remains a top priority for GAIL, crucial for India’s energy security and the transition to a gas-based economy.
During FY 2023-24, GAIL achieved an all-time high in gas transmission, with an average of 120.46 million standard cubic meters per day, a 12 per cent increase from the previous year. Revenue from this segment grew by 54.5 per cent to Rs 10,292 crore, driven by increased transmission volumes and revised tariffs. Additionally, the natural gas marketing volume increased by 4 per cent to 98.45 million standard cubic meters per day. In line with its commitment to ensuring supply security, GAIL has signed two 10-year LNG supply agreements, securing 1 MMTPA from Vitol Asia Pte Ltd, Singapore, and 0.5 MMTPA from ADNOC Gas, UAE, starting in 2026. The company has also renewed its volume of 4.5 MMTPA under the LNG SPA with Qatar Energy LNG, with supplies commencing in 2028 for a 20-year period. The acquisition of a long-term LNG vessel, GAIL Urja, will further bolster the company’s LNG transportation capabilities.
GAIL’s focus on the city gas distribution (CGD) business continues to grow, with significant expansions in the northeastern regions and other parts of India. The company now operates in 72 geographical areas across the country, making it the largest CGD operator in India. In FY 2023-24, GAIL and its group companies added 11.06 lakh PNG connections and 422 CNG stations, bringing the total to 83.4 lakh PNG customers and 2,770 CNG stations.
GAIL is taking bold steps towards sustainability and decarbonization, advancing its Net Zero target by five years to 2035. The company has already made significant strides, including the installation of India’s first MW-scale Green Hydrogen electrolyser in Vijaipur, Madhya Pradesh, capable of producing 4.3 TPD of hydrogen using renewable power.
In addition, GAIL is exploring the feasibility of setting up a greenfield ethane cracker and is involved in the Talcher Fertiliser Project and another coal gasification project in partnership with Coal India Ltd. These initiatives reflect the company’s dedication to reducing its carbon footprint and advancing India’s energy transition.
GAIL remains committed to upholding the highest standards of corporate governance, ethics, and integrity. The company has made significant progress in its digital transformation journey, including migrating to the latest SAP S/4 HANA platform to enhance operational efficiency.
The company’s Corporate Social Responsibility (CSR) initiatives continue to make a positive impact, with projects touching over 13 lakh lives in the past year. The Utkarsh project, aimed at economically disadvantaged students, achieved a remarkable success rate, with 97 per cent of students qualifying for the JEE Mains and 100 per cent for the NEET examination.
