National
GAIL lines up 54,000cr network expansion
New Delhi: State-run gas utility GAIL will spend Rs 54,000 crore in the next 2-3 years for expanding availability of the clean burning fuel to cities and industries across the country in a bid to reduce the economy’s carbon footprint. “The year (2018-19) saw highest-ever capex in a single year at Rs 8,344 crore and we are investing another Rs 54,000 crore over the next 2-3 years in laying (more) gas pipelines that will feed households and industries such as fertiliser plants,” company chairman B C Tripathi said on Monday. The expansion of GAIL’s pipeline network is pivotal for the government’s plan to raise the share of natural gas in the country’s energy basket to 15% by 2030 from 6% at present as part of its strategy to address climate change. The ambitious expansion plan comes in the backdrop of the company posting its highest-ever net profit at Rs 6,026 crore in the financial year ended March 31, marking an increase of 30% over the previous fiscal. Profit rose 10% in the fourth quarter to Rs 1,122 crore. The company board recommended a final dividend of Rs 1.77 per share to take the total dividend payout to over Rs 8 per share in 2018-19. Tripathi said the company has sold its entire 5.8 million tonne of LNG (liquefied natural gas) volumes from the US till 2020 and 80%-90% beyond that year. Given the inflexibility of US LNG contracts, this is a feat in an oversupplied market and speaks volumes about the company’s portfolio management. GAIL has a 14,000-km pipeline network and is laying another 6,000 km of pipelines at a cost of Rs 32,000 crore to supply gas to unconnected areas in the east and the south. It is investing another Rs 12,000 crore in setting up city gas distribution networks for supplying CNG (compressed natural gas) and PNG (piped natural gas) in towns such as Varanasi and Patna.