GAIL exploring opportunities to tie up with LNG producers

GAIL (India) is scouting the market for long-term tie-up opportunities with leading global LNG (liquefied natural gas) producers to meet the growing downstream gas demand in India.

In GAIL’s annual report for 2022-23, the company stated that natural gas could meet the increasing demand for clean, affordable energy with limited deployment of capital and significant impact on emissions. GAIL mentioned that the year 2022 witnessed extreme volatility, which tested the resilience, strength, and perseverance of the company.

In the financial year 2022-23, GAIL reported a decline of 55 percent in consolidated net profit compared to the previous year due to high natural gas prices. The net profit of the company stood at Rs 5,596 crore in FY23, against Rs 12,304 crore in FY22.

GAIL stated that it is strengthening its existing customer base while simultaneously working on expanding gas consumption in existing and emerging sectors.

The company also mentioned that it is exploring opportunities for ethane sourcing for its existing petrochemical plant. Additionally, GAIL has issued an EoI (expression of interest) to explore the opportunity of equity acquisition in an LNG liquefaction terminal along with a 1 MMTPA LNG tie-up from the USA, it added.