Corporate Development     

Published: November 15, 2023
Updated: November 15, 2023

GAIL(India)

Rs. 63,000-cr. Pact with BPCL to supply propane

In a significant move to secure availability of feedstock for its petrochemicals production, GAIL (India), India’s natural gas leader and a public sector undertaking, today signed an agreement with Bharat Petroleum Corporation Limited (BPCL) for 15-year supply of Propane for its upcoming petrochemical plant in Usar, Maharashtra The 15-year supply contract, estimated at a value of over Rs. 63,000 crore, will see GAIL procuring 600 KTPA of Propane from BPCL’s LPG import facility at Uran,which is presently capable of handling 1 MMTPA of LPG imports and is undergoing expansion to accommodate 3 MMTPA of propane and butane imports.

GAIL’s floating CNG station on River Ganga at Namo Ghat, Varanasi is a first-of-its-kind initiative in the world to run boats on cleaner fuel-CNG in the river. GAIL has created a CNG dispensing infrastructure, which manages response of the edifice against the variating water level. The project has led to gradual transitioning of motorized boats from polluting fuels to cleaner and affordable CNG.

GAIL got two prestigious awards at the Asian Oil and Gas Awards event held at Kulalumpur, Malaysia. The coveted “the Innovation Award- India” was given to GAIL for reduction in LNG shipping cost & emissions through Shipto-Ship (STS) transfer of LNG with backhauling. Another top notch award “Midstream Project of the Year- India” has been given for the installation of the first floating Compressed Natural Gas (CNG) station at Varanasi. The Award recognizes the most outstanding players in Asia’s oil and gas sector.

During the second quarter ended September, 2023, natural gas transmission volume stood at 120.31 MMSCMD in Q2 FY24 as against 116.33 MMSCMD in Q1 FY24. Gas marketing volume stood at 96.96 MMSCMD as against 98.84 MMSCMD in previous quarter. LHC sales stood at 242 TMT as against 247 TMT and Polymer sales stood at 168 TMT as against 162 TMT in comparison to previous quarter.

On consolidated basis, revenue from operations stood at Rs 65,898 crore in H1 FY24 as against Rs 76,671 crore during H1 FY23. PBT in H1 FY24 stood at Rs 5,421 crore as against Rs 5,905 crore in H1 FY23. PAT (excluding Noncontrolling interest) was Rs 4,236 crore in H1 FY24 as against Rs 4,568 crore in H1 FY23.

Shri. Sandeep Kumar Gupta, Chairman & Managing Director said that during the. quarter the company has performed well specially on the strength in gas transmission segment which will continue to perform better. He said performance during the quarter was constrained due to lower realisation in Polymers and LPG which are expected to be better going forward. He further stated that the company has incurred a Capex of around Rs 4,853 crore during the current half year, mainly on Pipelines, Petrochemicals, Equity to JVs, etc.