GAIL - Gas Authority of

India Ltd.
An Indian Navratna company
Date - 27 March 2020

Course Name: Oil & Gas Industry Operations

and Markets

By: Robin Azad - Marine (Oil & Gas) Professional

 Introduction
GAIL (India) Ltd was incorporated in August 1984 as a Central Public Sector Undertaking
(PSU) under the Ministry of Petroleum & Natural Gas (MoP&NG).

What the Company Does

GAIL (India) Ltd is India's flagship natural gas company integrating all
aspects of the natural gas value chain (including Exploration & Production
Processing Transmission Distribution and Marketing) and its related services.
Asia’s largest company in natural gas import and processing.

Company’s business focuses on:

- Natural gas
- Liquid hydrocarbons
- LPG transmission
- Petrochemicals
- City gas distribution

GAIL is a multidimensional company involves in Upstream, Midstream &

Downstream sectors of oil and gas industry.

The company is an integrated energy company along the natural gas

value chain with global footprints in India, USA, Singapore, etc.
 How the Company/Business Unit Has Performed

The company was initially given the responsibility of construction, operation

& maintenance of the pipeline Project. It was one of the largest cross-
country natural gas pipeline projects in the world. Originally this 1800 Km
long pipeline was built at a cost of ₹ 1700 Crores and it laid the foundation
for development of market for natural Gas in India.

1988: GAIL received approval for investment of ₹ 300 crore for setting up a
LPG extraction plant at Vijaipur. The unit, based on HVJ gas was to have a
capacity of over 400,000 TPA.

Pipeline construction

1990-91: commissioning of the Phase I of the LPG plant was completed,

eight months ahead of schedule.
1992: Phase-II was completed & commissioned.

1993-94: The Government permitted GAIL to market Propane in the country.

1995-96, two propane recovery plants at were commissioned to optimize
various components of natural gas.

1997-98, the Government of India granted the Navratna status, thereby

entrusting greater autonomy to the Company.

1999: Petrochemical plant setup with a design capacity of 300,000 tonnes of

Ethylene to produce 260,000 tonnes of HDPE and LLDPE.

2000-01 : LPG plant setup in two locations.

2003-08: brought the first success for GAIL’s E & P activities with gas
discovery in A 1 block in Myanmar and discovery of oil and gas in the
Cambay block. And major pipeline construction across country completed.

2011: Acquired its first shale gas assets in the USA through its wholly owned
US subsidiary GAIL Global (USA) Inc.

US Shale gas asset

2012-17 : Constructed pipelines more than 5000 km with total cost more
than ₹15000 crore.

Company has grown many folds due to being a major player in the segment
as well as funded by Government and sole company to construct gas
pipelines, and involved as well as supplying to City gas distribution,
Marketing, Exploration and production companies as well.

What the Challenges/Successes Have Been for the Company

India is second-fastest growing gas markets globally. India Natural Gas and
LNG market is expected to grow from US$ 19.7 billion in 2015 to US$ 30.7
billion by 2025 at a CAGR of 5.06% between 2016 and 2025. GAIL being
the major player will be among top companies in the world involved in
Natural Gas business.

On the supply side, additional Regasified LNG (RLNG) terminals, a

transmission pipeline network and transnational pipelines would help to
meet demand and achieve a higher share of natural gas in the overall
installed capacity of energy – from 9% in 2014 to 20% by 2030.
GAIL has signed number of MOUs for supply and processing of natural gas
with other state owned companies as well as with multiple nations to supply
the Natural Gas to India. Owns Natural gas facilities for storing,
regasification and cracking and producing multiple products like Propane,
LPG and other petrochemicals, have also constructed long distance
pipelines for city gas distribution.

GAIL India, the country's largest gas transportation and marketing company,
plans to set up battery charging stations for electric vehicles as well as build
solar plants as it looks to be "future ready" for emerging businesses..

It also wants to explore the business opportunity in waste-water treatment

plants, water distribution, and large water pipeline laying as an early mover.
"GAIL have the country's biggest network of pipelines and gas marketing
infrastructure

It is looking at possibilities of setting up battery charging stations for e-

vehicles at CNG dispensing stations in a bid to diversify its portfolio beyond
gas and petrochemicals.

Bibliography:

https://gailonline.com/AB-Gailstory.html

https://gailonline.com/home.html

https://economictimes.indiatimes.com/industry/energy/oil-gas/natural-gas-
consumption-to-rise-3-folds-in-10-yrs-for-15-target-pradhan/articleshow/
72382676.cms?from=mdr

https://gailvoice.com/natural-gas-demand-supply-dynamics-india/

http://petroleum.nic.in/natural-gas/about-natural-gas