GAIL

GAIL has built a network of trunk pipelines covering the length of around 11,000 km. Leveraging on the core competencies, GAIL played a key role as gas market developer in India for decades catering to major industrial sectors like power, fertilizers, and city gas distribution. GAIL transmits more than 160 million cubic metre per day at standard conditions of gas through its dedicated pipelines and have more than a 70% market share in both gas transmission and marketing.

However, there are regional imbalances in the gas supply across the country. To bridge this gap in infrastructure, the Ministry of Petroleum and Natural Gas, in 2007, authorised five new pipelines to GAIL covering a length of over 5,500 km.

• Phase-I completed till Bawana

•• Phase-I completed till Sultanpur In addition to these, GAIL is augmenting the capacities of its two existing pipelines, viz. Dahej– Vijaipur pipeline and Vijaipur – Dadri pipeline. All these projects are progressing well and are expected to be completed in phases by 2013 -14 or so. When these pipelines are commissioned, the capacity of GAIL pipeline system is expected to increase from 157 million cubic metre per day at standard conditions at present to over 300 million cubic metre per day and cover over 14,000 km.

Since inception in 1984, GAIL has been the undisputed leader in the marketing, transmission and distribution of natural gas in India. As India's leading natural gas major, it has been instrumental in the development of the natural gas market in the country.

GAIL sells around 51% (excluding internal usage) of the natural gas sold in the country. Of this, 37% is sold to the power sector and 26% to the fertiliser sector. GAIL is supplying around 60 million cubic metre per day at standard conditions of natural gas from domestic sources to customers across India. These customers range from the smallest of companies to mega power and fertiliser plants. GAIL has adopted a gas management system to handle multiple sources of supply and delivery of gas in a co-mingled form and provide a seamless interface between shippers, customers, transporters and suppliers. GAIL is present in 11 states: Gujarat, Rajasthan, Madhya Pradesh, Delhi, Haryana, Uttar Pradesh, Maharashtra, Tamil Nadu, Andhra Pradesh, Assam, and Tripura. They are further extending their coverage to states of Kerala, Karnataka, Punjab, Uttarakhand, West Bengal and Bihar through their upcoming pipelines.

By the end of 2009–10, the gas consumption in India stood at 165 million cubic metre per day at standard conditions with LNG occupying 15% (25 million cubic metre per day) of the entire gas market. The proportion of imported LNG is expected to increase to anywhere between 20% and 30% by 2015. GAIL has been playing a principal role on its part in ensuring that the government's objective of achieving energy security is achieved through a judicious mix of energy portfolio.

As a dominant player in the gas markets, GAIL plays a major role in sourcing of LNG and creation of the pipeline infrastructure to form an efficient national grid that will ensure connectivity to all demand centres. To achieve these objectives, GAIL is actively pursuing LNG sourcing from major LNG producers/sellers all across the globe and has been adopting a strategy to have a mixed portfolio of spot, short/mid-term, and long-term deals. To ensure long-term supplies in the past, GAIL has promoted Petronet LNG Ltd (PLL), along with oil majors Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Limited (BPCL) for the import of LNG into India. PLL is importing 7.5 million tonnes per year of LNG from Qatar for its Dahej Terminal on long-term contract basis. PLL will also be importing 1.44 million tonnes per year from Gorgon LNG project, Australia for its Kochi Terminal. GAIL is also the sole transporter of the entire RLNG and a major off-taker from both these contracts.

Further, from time to time GAIL had imported LNG on a spot basis to cater to additional gas demand in India. GAIL imported its first spot cargo from Algeria in May 2006 and within a shorter span has gone on to become a major importer of LNG in Asia. GAIL had imported five spot cargoes in the first half of 2011. In addition, GAIL has imported 1 LNG cargo from the international market through PLL.

GAIL had also inked a short-term deal with Marubeni Corporation to purchase up to 0.50 million tonnes per year of LNG on a medium term basis and has already received three LNG cargoes under the contract. The government of India has entrusted GAIL with the responsibility of reviving the LNG terminal at Dabhol in Maharashtra, as well as sourcing LNG for the terminal. GAIL is exploring all the possible options for sourcing around 5 million tonnes per year of LNG for the Dabhol Terminal. GAIL has stepped up efforts to source LNG on a long-term basis from various projects across the globe including Qatar, Australia, Russia and US.

Until now GAIL has signed 23 master sales and purchase agreements (MSPA) with various LNG suppliers in its endeavor to source spot and medium term from time to time. GAIL is also in talks to add six to eight additional suppliers under the umbrella.

GAIL has marketing gas processing units (GPUs) products, namely liquefied petroleum gas, propane, pentane, naphtha and by-products of polymer plant, namely MFO, propylene and hydrogenated C4 mix. LPG is being sold exclusively to PSU oil marketing companies (OMCs) while other products are sold directly to customers in the retail segment.

GAIL is India's major producer of propane, popularly known as GAIL Propane. It is an eco-friendly fuel and provides an effective way of reducing pollution and increasing productivity.

GAIL produces and markets pentane. It is primarily being used for reprocessing into iso, normal and commercial pentane used in EPS, PU, LAB industry.

Acetone and phenol are being produced from propylene by blending with benzene which are mainly used in the pharmaceutical industry.

MFO is mainly used as fuel for heating, paint spraying, and furniture polishing. Naphtha is primarily used by power, Fertilizer, steel and Petrochemical units. In power, steel units it is used as a fuel, whereas in petrochemical, chemical, fertilizer units it is used as a feedstock.

GAIL is operating seven gas processing units (GPU) located at Vijaipur (two units), Auraiya, Vaghodia, Usar, Lakwa and Gandhar plants for production of LPG and GCU at Pata plant for production of polymer. In the process of production of main products, such as LPG and polymer through GPU/GCU except the Usar, the following by-products- liquid hydrocarbons (LHC) are produced:

Liquefied petroleum gas (LPG) is the most widely used domestic and commercial fuel in India. Over the past four years, GAIL has emerged as one of the major LPG producers in the country. Around 90 per cent of the LPG is consumed in India as fuel by the household sector, while the balance is sold to industrial and commercial customers. GAIL has seven LPG Plants, two at Vijaipur and one at Vaghodia, and one each in Lakwa (Assam), Auraiya (UP), Gandhar (Gujarat) and Usar (Maharashtra), producing over 1 million TPA LPG and other liquid hydrocarbons.

GAIL is the first company in India to own and operate pipelines for LPG transmission. It has 2038 km LPG pipeline network 1,415 km of which connects the western and northern parts of India and 623 km of networks is in the southern part of the country connecting Eastern Coast. The LPG transmission system has a capacity to transport 3.8 million tonnes per year of LPG. LPG transmission through pipelines was 3145 TMT in the year 2013–14.

GAIL has a share of about 10% of the Indian LPG market in LPG production and 7% in LPG sales.

GAIL produces LPG through fractionation in gas processing units, known as straight run LPG. GAIL's LPG is an eco-friendly fuel and provides a cheaper and effective means of reducing pollution and increasing productivity.

GAIL LPG is being supplied to PSU Oil Marketing Companies namely IOCL, BPCL and HPCL ex-GPUs at Import Parity Price.[10]

GAIL diversified from gas marketing and transmission into the polymer business by setting up North India's first gas based Petrochemicals complex. Even without having any prior experience in petrochemicals, GAIL commissioned the plant successfully in the year 1999, by rigorous teamwork and project management capabilities. The petrochemical business is one of the core focus areas of GAIL.

GAIL owns and operates a gas based Petrochemical Complex at PATA, District Auraiya, near Kanpur in UP (around 380 km from Delhi). GAIL has world class "Sclairtech" solution polymerization process licensed from M/s Nova Chemicals, Canada to produce LLDPE and HDPE, with a nameplate capacity of 210,000 million tonnes per year and has two slurry based polymerization processes licensed from M/s Mitsui Chemicals, Japan to produce HDPE, each with a nameplate capacity of 100,000 million tonnes per year. A new world class gas phase Unipol PE Process of M/s Univation Technology, USA, with a nameplate capacity of 400,000 million tonnes per year, has been commissioned at PATA to produce HDPE/LLDPE.

GAIL Pata is the only HDPE/LLDPE plant operating in Northern India and has a dominant market share in North India. The primary thrust markets for the polymers had been Western India, but, with the entry of GAIL in the HDPE & LLDPE market Verticals, today North India has also witnessed a rapid and significant growth in the polymer downstream processing Verticals. In a successful span of about a decades of establishing and marketing its grades under the brand names G-Lex and G-Lene, GAIL has alongside augmented its name plate capacity of HDPE and LLDPE to 410,000 MTPA by adding another dedicated HDPE downstream polymerisation unit of 100,000 MTPA.

GAIL has 70% equity in joint venture company Brahmaputra Cracker & Polymer Limited (BCPL) in Dibrugarh, Assam with a nameplate capacity of 220 KTA of HDPE & LLDPE and 60 KTA of PP. GAIL has acquired equity in OPaL's Greenfield petrochemical project at Dahej to produce 1060 KTA of HDPE & LLDPE and 340 KTA of PP. GAIL is a co-promoter with 17% equity stake in ONGC Petro-additions Limited (OPaL) which is implementing a green field petrochemical complex of 1.1 million tonnes per year ethylene capacity at Dahej in the state of Gujarat.[11]

The current per capita consumption of plastics in India is about 1.8 kg compared with the world average of 17 kg. Demand and supply projections indicate a progressively increasing domestic offtake. Being the only plant outside western India, it offers easy access to polymer consumers in Northern India and parts of Central India.

GAIL is the pioneer of city gas distribution in India. GAIL took many initiatives to introduce PNG for households and CNG for the transport sector to address the rising pollution levels. Pilot projects were launched in the early 1990s in two metros Delhi and Mumbai through joint venture companies Indraprastha Gas Limited (IGL) and Mahanagar Gas Limited (MGL) leading to the start of commercial operation of city gas projects. The results of these ventures are quite visible through the improvement in air quality in these cities.

Based on the success of IGL and MGL, GAIL has further set up six more JVCs viz Bhagyanagar Gas Limited, Andhra Pradesh; Avantika Gas Limited in Madhya Pradesh; Central U P Gas Limited & Green Gas Limited in Uttar Pradesh; Maharashtra Natural Gas Limited in Pune Maharashtra and Tripura Natural Gas Company Limited in Tripura for CGD projects in various cities.

However, Ministry of Petroleum & Natural Gas established the Petroleum and Natural Gas Regulatory Board (PNGRB) with effect from 01.10.2007, under the Petroleum and Natural Gas Regulatory Board Act 2006, to regulate the refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas excluding production of crude oil and natural gas. The Petroleum & Natural Gas Regulatory Board Act-2006 provides the legal framework for the development of the natural gas pipelines and city or local gas distribution networks. With the arrival of the PNGRB the implementation of PNG in various cities is being taken up in a phased manner as and when the bids are called for by the regulator.

GAIL is participating in 10 exploration blocks, in Basins such as Mahanadi, Mumbai, Cambay, Assam-Arakan, Tripura Fold Belt, Gujarat Kutch, Krishna Godavari, Cauvery and Cauvery Palar. GAIL has partnership in these blocks with various companies such as ONGC, OIL, GSPC, Hardy Exploration & Production, Petrogas, JOGPL, Eni and Daewoo as Operators. Out of these 10 E&P blocks, 2 blocks are overseas (A-1 and A-3 blocks in Myanmar).

The blocks are in various stages of exploration, appraisal and development. Hydrocarbon discoveries are in place in 7 E&P blocks in blocks where GAIL is participating. The blocks with hydrocarbon discoveries are: MN-OSN-2000/2, CB-ONN-2000/1, Block A-1 and A-3 Myanmar, CY-OS/2, AA-ONN-2002/1, CB-ONN-2003/2.

Production of crude oil is in progress from Cambay Onland block (CB-ONN-2000/1) @ 1250 barrels per day. Development activities are in progress in 2 blocks in Burma (A-1 and A-3) and production of gas is expected from May 2013. Declaration of Commerciality has been approved by the Government in Mahanadi Offshore (MN-OSN-2000/2) block. In other blocks where hydrocarbon discoveries have been made, the appraisal is in progress.

GAIL is an active member of multi-organisation team (MOT) set-up for assessment of shale gas potential in Indian basins. The other representative in MOT are from DGH (Directorate General of Hydrocarbons), ONGC and Oil India Limited (OIL).

GAIL is also a member of National Gas Hydrate Programme being coordinated by DGH and is actively involved in activities related to gas hydrate exploration.

GAIL Gas is a wholly owned subsidiary of GAIL. GAIL Gas has been selected for implementation of City Gas Distribution (CGD) projects in four cities, namely, Kota, Dewas, Sonepat, and Meerut in the first round of bidding by the Petroleum & Natural Gas Regulatory Board (PNGRB). GAIL Gas supply CNG & PNG (industrial, commercial and household customers) in the city of Dewas, Meerut, Sonepat, Varanasi and Kota. GAIL GAS is providing natural gas to approximately 350 industrial consumers in TTZ (Taj Trapezium Zone) area (Agra and Firozabad) in Uttar Pradesh India. GAIL GAS has also started the CGD work in Bengaluru Karnataka recently.

...

GAIL has 70% equity share in BCPL, a Joint Venture, with Oil India Limited (OIL), Numaligarh Refinery Limited (NRL), Govt. of Assam, each having 10% equity share. Feedstock Supply Agreements have been signed between BCPL and all the three suppliers, viz., Oil and Natural Gas Corporation Limited, Oil India Limited and Numaligarh Refinery Limited. Technology licence agreements have been signed for cracker, polyethylene and polypropylene units.

BCPL was dedicated to the nation by Hon'ble Prime Minister of India Shri Narendra Modi on 5 February 2016. BCPL is set up to produce 280,000 TPA polymer plant at an investment of ₹99.65 billion (US$1.4 billion). The financial commitment to the extent of ₹54 billion (US$760 million) has been made. The plant is presently in O&M phase with capacity utilization of more 100%. In the financial year 2019-20, the plant operated at 108 % capacity utilization.

GAIL has a wholly owned subsidiary, namely, GAIL Global (Singapore) Pte Ltd., to manage investments abroad. GAIL is looking for further business opportunities through this subsidiary company. The official website for GAIL Global Singapore Pte Ltd. is http://www.ggspl.com/. To know more about this subsidiary download the fact sheet.

Aavantika Gas Limited (AGL)
AGL is in operation in Indore and Ujjain and is supplying CNG to the transport sector in these cities. AGL is supplying CNG to almost 9,000 vehicles in both the cities. AGL has plans to set up five and two CNG stations in Gwalior and Ujjain respectively, and domestic supplies to households. Six daughter stations are mechanically ready for CNG dispensing, awaiting for CCOE final approval. MoPNG has authorised AGL for CGD in Indore, Gwalior and Ujjain. GAIL has 22.5% stake in the Company along with HPCL as an equal partner.

Bhagyanagar Gas Limited (BGL)
BGL is operating six CNG stations in Vijayawada and 4 CNG stations in Hyderabad and one CNG station in the Rajamahendravaram. BGL is supplying CNG in these three cities to almost 6,000 vehicles. BGL is also operating two Auto LPG stations in Hyderabad and one Auto LPG station in Tirupati. BGL has received authorisation from MoPNG for City Gas Distribution (CGD) in Hyderabad and Vijayawada. GAIL has a 22.5% stake in the company along with HPCL as an equal partner.

Central U.P. Gas Limited (CUGL)
CUGL is operating 15 CNG stations in Kanpur, Unnao and two CNG stations in the Bareily. CUGL is supplying CNG to almost 45,000 vehicles in the two cities. CUGL commenced its domestic supply of PNG with connexions to 15000 households in Kanpur and Bareilly. CUGL has received authorisation from MoPNG for CGD in Kanpur, Unnao, Bareilly & Jhansi. GAIL has 25% stake in the Company along with BPCL as an equal partner. CUGL has connected 200 commercial and industrial units in both the cities.

Green Gas Limited (GGL)
GGL is operating six CNG stations in Lucknow and three CNG stations in Agra. GGL is supplying CNG in the two cities. GGL has tied up for the commencement of domestic supply of PNG with connexions to households, commercial and industrial establishments. MoPNG has authorised GGL for CGD in Lucknow and Agra. GAIL has a 22.5% stake in the company along with IOCL as an equal partner.

Indraprastha Gas Limited (IGL)
IGL is the largest CGD entity in terms of CNG sales and the number of vehicles supplied by CNG in India. IGL has received authorisation from MoPNG for CGD in Delhi and its suburbs viz. NOIDA (Gautam Budh Nagar), Greater NOIDA, Faridabad and Ghaziabad and part of Gurugram from State Govt. of Haryana. IGL is supplying piped gas to around 900,000 domestic, 3500 Commercial, 1600 small industrial consumers and CNG to over 10,00,000 vehicles through around 425 CNG stations in NCR. GAIL has a 22.5% stake in the company along with BPCL as an equal partner.

Mahanagar Gas Limited (MGL)
MGL is a joint venture of GAIL and British Gas. MGL has set up 140 CNG stations catering to over 200,000 vehicles spread over Mumbai, Thane, Mira-Bhayandar and Navi-Mumbai areas besides supplying PNG to over 450,000 domestic customers, more than 1,000 small industrial and commercial consumers. It has received authorisation from MoPNG for CGD in Mumbai, District Thane including Navi Mumbai and Mira Bhayander. GAIL has a 49.75% stake in the company along with British Gas as an equal partner.

Maharashtra Natural Gas Limited (MNGL)
MNGL is a joint venture of GAIL and Bharat Petroleum Corporation Limited (BPCL) for implementation of City Gas Projects in and around Pune city. MNGL has received authorisation from MoPNG for CGD in Nashik, Pune including Pimpri, Chinchwad, Talegaon, Hinjewadi and Chakan areas. It has started 10 stations supplying CNG to nearly 5,000 vehicles. GAIL has a 22.5% stake in the company along with BPCL as an equal partner.

ONGC Petro-additions Limited (OPaL)
GAIL is in the process of acquiring the equity stake in ONGC Petro- additions Limited (OPaL), which is a joint venture of GAIL with Oil and Natural Gas Corporation Ltd. and Gujarat State Petroleum Corporation Ltd., for setting up Petrochemical Project at Dahej in Gujarat. OPaL is setting up a green field petrochemical complex of 1.1 million tonnes per year ethylene capacity (dual feed cracker) in Dahej, Gujarat.

Four main players dominate the petrochemical sector, namely, Reliance Industries Ltd. (RIL), Indian oil (IOCL), Gas Authority of India Ltd. (GAIL), and Haldia Petrochemicals Ltd. A New Chapter to this Industry has been added by the evolution of ONGC Petro additions Ltd. (OPaL) on 15 November 2006 which is a joint venture company of Oil and Natural Gas Corporation Limited (ONGC), Gujarat State Petroleum Corporation Ltd. (GSPCL) and GAIL India Ltd. is a grass root Mega Petrochemical complex of Global scale based on dual feed i.e., C2/C3/C4 & Naphtha at Dahej special Economic Zone (SEZ), Gujarat. The complex consists of Dual Feed Ethylene cracker (with C2/ C3/ C4 and Naphtha feed ) of 1100KTPA capacity to produce Ethylene and Propylene as Petrochemical Feedstock to downstream units of Polyethylene (LLDPE, HDPE) and Polypropylene(PP) and associated unit i.e., PyGas Hydrotreating, Benzene and Butadiene extraction plants to produce other products (Pygas, 1,3- Butadiene and Benzene). Utility and offsite facilities to cater to complex requirement is built within the Complex which includes ECTS and CPP. The grass root complex is located at a distance of about 10 km to the ONGC's C2+ Extraction Plant within Special Economic zone (SEZ) at Dahej, Gulf of Khambhat.

Feed system: C2, C3 & C4 feed is sourced from existing C2+ recovery plant of ONGC in Dahej (at a distance of 10 km) through the pipeline. Mixed Naphtha (LAN & ARN) in definite proportionate from Hazira is sourced to Petrochemical complex through a separate pipeline.

Saleable products: The products shall be dispatched through various modes, like bagging, truck, rail, tanker loading and through pipelines.

Petronet LNG Limited (PLL)
PLL has been formed for setting up of LNG import and regasification facilities. PLL has a long term LNG supply contract with RasGas, Qatar, for import of 7.5 million tonnes per year of LNG. PLL Dahej terminal in Gujarat has been expanded to 10 million tonnes per year capacity. PLL has successfully implemented a pilot project for supplying LNG through cryogenic road tankers. PLL is also coming up with an LNG terminal at Kochi, Kerala, with an initial capacity of 2.5 million tonnes per year, expandable up to 5 million tonnes per year and it was scheduled to be operational by end of 2011. GAIL has a 12.5% equity stake in PLL, along with BPCL, ONGC and IOCL as equal partners.

Ratnagiri Gas and Power Pvt. Ltd. (RGPPL)
RGPPL is a joint venture company between GAIL, NTPC, Financial Institutions and MSEB. The capacity of the Ratnagiri Gas & Power Station is 2,150 MW, which is the largest gas based power generation facility in the country and is producing 1,850 MW of power. RGPPL is in the process of commissioning an LNG import terminal of 5 million tonnes per year capacity. GAIL has 32.88% stake in the company along with NTPC as an equal partner.

Tripura Natural Gas Company Limited (TNGCL)
TNGCL is supplying gas to around 7,500 domestic, 170 commercial and industrial consumers and has set up one CNG station in Agartala, which is catering to more than 1,400 vehicles. TNGCL has received authorisation from MoPNG for CGD in Agartala. GAIL has 29% stake in the company.

GAIL China Gas Global Energy Holdings Limited
The joint venture company has been formed with an objective to pursue gas sector opportunities, mainly in China. GAIL has 50% equity interest in the company along with China Gas as the equal partner. The joint venture company is in the process of identifying projects in gas and other related areas in China.

ANDHRA PRADESH GAS DISTRIBUTION CORPORATION
The joint venture company has been formed with an objective to reduce the gap between gas demand and supply, mainly in Andhra Pradesh. GAIL Gas Limited has 50% equity interest in the company along with APGIC (Andhra Pradesh Gas Infrastructure Corporation) as the equal partner.