GAIL is scouting for a stake in LNG (liquefied natural gas) projects in the US and long-term supply deals as the state-run utility expects gas transmission volumes to rise on the back of expanding pipeline network.
The company also plans to spend Rs 30,000 crore in the next three years on expanding its pipelines, city gas network and petrochemicals capacity, chairman Sandeep Kumar Gupta told shareholders on Wednesday.
GAIL has teamed up with Greenline, a company backed by Essar group’s venture capital arm Exponentia Ventures, which is pioneering use of LNG for fuel line heavy-duty commercial vehicles.
The company has issued EoI (expression of interest) for equity in LNG liquefaction terminal along with about a million tonne per annum from the US, Gupta said, adding talks are on with major suppliers for long-term contracts. Simultaneously, GAIL is connecting gas from new fields and upcoming LNG import terminals into its pipeline network.
Gupta said India will contribute 10% of the incremental global growth in petrochemicals over the next decade in view of the rising domestic demand.
GAIL recently acquired JBF Petrochemicals Ltd through the insolvency process and infused Rs 2,100 crore into the bankrupt company. GAIL is also setting up its first specialty chemicals plant for making 50,000 tonnes of isopropyl alcohol at Usar in Maharashtra.
These additions will allow the company to expand product portfolio.