GAIL’s natural gas transmission rises 10.2% in Apr-Jun quarter to 96.42 mil cu m/d
Indian state-owned GAIL’s natural gas transmission in the April-June quarter rose 10.2% year on year to 96.42 million cu m/d, the latest company update showed.
The company recorded 2.9% rise in LPG transmission to 709,000 mt in the first quarter of fiscal year 2016-17 (April-March), from a year ago.
GAIL’s natural gas sales rose 14.8% year on year in the quarter to 79.1 million cu m/d.
GAIL, the nation’s flagship gas transportation utility company, owns and operates a network of over 11,000 km of high-pressure gas pipelines.
GAIL’s net profit over April-June rose 244% year on year to Rupees 13.35 billion ($201 million) from a year-ago period.
The jump in net profit received a boost by a turnaround in the petrochemical business and partial stake sale in Mahanagar Gas Ltd. — a joint venture with UK’s BG Group, a company official said Thursday.
MGL runs gas distribution network at western metropolis Mumbai and surrounding areas.
GAIL’s revenue fell 14.6% year on year to Rupees 106.87 billion in the April-June quarter on lower realization from gas marketing and LPG sales.
In the petrochemical segment, output rose 149% year on year to 127,000 mt while sales rose 120% to 110,000 mt in the April-June period.
GAIL has been engaged in developing a nationwide gas grid and setting up a gas pipeline network as part of its mandate to raise the share of gas in the country’s energy basket.
It just finished the tender process for the national gas grid and pipelines construction will start shortly, company officials said.
The current government has put thrust in developing gas pipeline networks across 20 big cities as part of the Smart City project.
At an industry event on Tuesday, oil minister DharmendraPradhan highlighted India’s commitment to raising the share of natural gas in the country’s energy basket to 15% from current 6.5% as part of the official thrust to promote clean fuels, though the minister did not give any timeline for reaching the target.
Pradhan said India was keen to promote synthetic gas from sources like coalbed methane.
“We are also going to take steps to promote Bio-CNG and Bio-PNG,” he said.
The share of natural gas in the global energy basket stands at around 23.5%, the minister said, adding India’s gas market offers a huge opportunity for investors worldwide.
Pradhan will hold a roadshow in London next week to attract investors to India’s latest round of auction for small oil and gas fields.
India has thrown open 67 such fields to overseas investors who can bid until October 31.
“We are keen on awarding these small and marginal oil and gas fields to successful bidders by the end of this year so that they can start operations by early next year,” the minister said.
Pradhan is scheduled to be in Singapore on September 9-10 for an interactive meet cum roadshow to attract investment in the latest round of offerings.