Gail plans ₹30,000 cr capex in next 3 years; focus on pipeline, petchem

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₹30,000 crore, mainly in pipelines, petrochemical projects and city gas distribution, over the next three years. The company's total capital expenditure for FY23 was ₹10,000 crore. "Company is growing steadily and creating infrastructure facilities across the nation.

We are targeting to incur a capex ₹30,000 crore in the next 3 years, mainly on pipelines, ongoing petrochemical projects, CGD projects, operational capex, equity contribution in group companies etc," said Gail CMD Sandeep Kumar Gupta while addressing the shareholders at the annual general meeting (AGM). Gupta also said that the company has been trying to secure natural gas for the country and the consumers. "Your company has issued an EoI to explore opportunity of equity acquisition in LNG liquefaction terminal along with 1 MMTPA LNG tie-up from USA," he said.

The CMD also said that Gail has taken steps to provide tie-in connections with its natural gas pipelines to the upcoming new gas sources and upcoming RLNG terminals to enable more and new gas injections into its pipelines. Referring to the supply issues amid the Russia-Ukraine war, he noted that the year 2022 witnessed extreme volatility and shift in geopolitical dynamics which affected the world’s energy ecosystem, resulting in a difficult year for the global natural gas market witnessing significant ups and downs. "Gail did not remain unaffected as we suffered supply disruptions in one of our long-term LNG sourcing contracts, coupled with reduced allocation of domestic gas for processing plants and a record spike in global LNG prices.