GAIL

Gas Authority of India Limited
भारतीय गैस प्राधिकरण लिमिटेड
State-owned enterprise
public company
Traded as BSE: 532155, NSE: GAIL, LSE: GAID
BSE SENSEX Constituent
Industry Energy, Petrochemicals
Founded 1984
Headquarters New Delhi India
Key people
Shri B. C. Tripathi (Chairman & MD)[1]
Products Natural Gas, Petrochemical, Liquid Hydrocarbons, Liquefied Petroleum Gas Transmission, City Gas Distribution, E&P, Telecommunication, Electricity Generation.
Revenue Increase 619 billion (US$9.1 billion) (FY2013–14)
Increase 47 billion (US$690 million) (FY2013–14)
Number of employees
3,994 (2013)
Parent MoP&NG
Subsidiaries GAIL Gas, BCPL and GAIL Global (Singapore) Pte Ltd.
Website www.gailonline.com

GAIL (India) Limited is the largest state-owned natural gas processing and distribution company in India, It is headquartered in New Delhi. It has following business segments: Natural Gas, Liquid Hydrocarbon, Liquefied petroleum gas Transmission, Petrochemical, City Gas Distribution, Exploration and Production, GAILTEL and Electricity Generation. GAIL has been conferred with the Maharatna status on 1 Feb 2013, by the Government of India.[2] Only six other Public Sector Enterprises (PSEs) enjoy this coveted status amongst all central CPSEs.[3] GAIL has been listed in the 131st position among India's Most Trusted brands according to the Brand Trust Report 2014, a study conducted by Trust Research Advisory.[4]

History

GAIL (India) Limited was incorporated in August 1984 as a Central Public Sector Undertaking (PSU) under the Ministry of Petroleum & Natural Gas (MoP&NG). The company used to be known as Gas Authority of India Limited. It is India's principal gas transmission and marketing company. The company was initially given the responsibility of construction, operation & maintenance of the Hazira – Vijaypur – Jagdishpur (HVJ) pipeline project. It was one of the largest cross-country natural gas pipeline projects in the world. This 1800-kilometre-long pipeline was built at a cost of 17 billion (US$250 million) and it laid the foundation for development of market for natural gas in India. GAIL commissioned the 2,800 kilometres (1,700 mi) Hazira-Vijaipur-Jagdishpur (HVJ) pipeline in 1991. Between 1991 and 1993, three liquefied petroleum gas (LPG) plants were constructed and some regional pipelines acquired, enabling GAIL to begin its gas transportation in various parts of India.

GAIL began its city gas distribution in New Delhi in 1997 by setting up nine compressed natural gas (CNG) stations.

In order to secure gas for its mainstream business Exploration and Production department was created. Today GAIL is a partner in the Dawoo-OVL led consortium in two offshore block in Myanmar which has made a gas discovery. Bulk of its blocks are located in India in the prolific basins of Cambay, Assam-Arakan, Mahanadi, Krishna Godavary Deep water and onland, Cauvery onland and deep water and western offshore. It is actively scouting for foreign blocks both exploratory or discovery.

GAIL today has reached new milestones with its strategic diversification into Petrochemicals, Telecom and Liquid Hydrocarbons besides gas infrastructure. The company has also extended its presence in Power, Liquefied Natural Gas re-gasification, City Gas Distribution and Exploration & Production through participation in equity and joint ventures. Incorporating the new-found energy into its corporate identity, Gas Authority of India was renamed GAIL (India) Limited on 22 November 2002.

GAIL (India) Limited has shown organic growth in gas transmission through the years by building large network of trunk pipelines covering length of around 10,700 kilometres (6,600 mi). 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 mmscmd of gas through its dedicated pipelines and have more than 70% market share in both gas transmission and marketing.

Nagaram incident

After 30 years of incident-free gas transportation by GAIL,[5] on 27 June 2014, 22 people were killed after the trunk of the Tatipaka-Kondapalli pipeline operated by GAIL exploded following a gas leak near Nagaram in East Godavari district, about 600 km from Hyderabad.[6][7] While the explosion killed some persons in nearby houses, the resulting fire engulfed several other houses adjacent to the pipeline trapping residents and many were burnt alive.[8]

The pipeline, built in 2001 to move processed, dry natural gas[9] to a Lanco power plant, transported gas and water and condensate contaminants coming from ONGC's wells.[10]

An oil ministry probe concluded that a "collective failure" between the parties involved with ensuring compliance with safety measures allowed water and condensate to corrode the pipeline to the extent that gas was able to collect at the surface where the lighting of a stove nearby caused an explosion. The report said of the Petroleum and Explosives Safety Organisation (PESO) that there was "no evidence of any efforts" by the organisation to enforce the utilisation of a Gas Dehydration Unit to remove water and liquids that lead to the pipeline corrosion. Both the Indian Petroleum and Natural Gas Regulatory Board and the Oil Industry Safety Directorate which also audited the pipeline for gas content had reported no significant findings.[10]

Infrastructure

GAIL owns the country's largest pipeline network, the cross-country 2300 km Hazira-Vijaipur-Jagdishpur pipeline with a capacity to handle 33.4 MMSCMD gas.Today the company owns and operates more than 11000 km long cross country natural Gas Pipeline in India HAVING PRESENCE IN 22 states in the country. It also owns and operates more than 2000 km long LPG pipelines in the country and has the pride to operate one of the world's longest exclusive LPG Pipeline in the country from Jamnagar in Gujarat to Loni in Uttar Pradesh. The Company also owns and operates seven mega LPG Recovery plants in the country today and has to its credit almost 20% of domestic LPG produced and supplied for the domestic usage through its sisters PSUs like IOCL, BPCL and HPCL. GAIL is one of major Petrochemical conglomerate in the country today with India's largest Gas based PETROCHEMICALS in operation since 1999. In Petrochemicals it has its own gas based integrated petrochemical plant and also ownership of 70% in dual fuel petrochemicals in Assam, Brahamaputra Cracker and Polymer Limited and one of the major equity partners in OPal.

The Company supplies gas to power plants for generation of over 4,000 MW of power to fertilizer plants for production of 10 million tonnes of urea and to several other industries. The regional pipelines are in Mumbai, Gujarat, Rajasthan, Andhra Pradesh, Tamil Nadu, Pondicherry, Assam, Tripura, Madhya Pradesh, Haryana, Uttar Pradesh and Delhi. The Company has established six Gas Processing (LPG) Plants, four along the HVJ pipeline two at Vijaipur, MP, one at Vaghodia, Gujarat and Auraiya, UP and one each in Lakwa, Assam and Usar, Maharashtra. These plants have the capacity to produce nearly 1 million tpa of LPG. GAIL has also set up several compressor stations for boosting the gas pressure to desired levels for its customers and internal users.

GAIL also possesses a vast telecommunication network that contributes significantly to the high level of system reliability of operations, on-line real time communication and monitoring higher productivity. GAIL became the first Infrastructure Provider Category II Licensee and signed the country's first Service Level Agreement for leasing bandwidth in the Delhi-Vijaipur sector in 2001, through its telecom business GAILTEL.

GAIL Project offices have been set up where its plants, complexes, etc. are located. In 2001, GAIL commissioned world's longest and India's first Cross Country LPG Transmission Pipeline from Jamnagar to Loni.

Operations

Natural gas

Natural gas transmission

GAIL has built a network of trunk pipelines covering 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 MMSCMD of gas through its dedicated pipelines and have more than 70% market share in both gas transmission and marketing.

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

S. No. Pipeline Length km/ Capacity in MMSCMD Commissioning
1. Dadri Bawana Nangal* 610 km/31 MMSCMD 2011–12
2 Chainsa Jhajjar Hissar** 300 km/35 MMSCMD 2011–12
3. Jagdishpur Haldia 2000 km / 32 MMSCMD 2013–14
4. Dabhol Bangalore[11] 1386 km/ 16 MMSCMD 2013–14
5. Kochi Kanjirikkod Bangalore 860 km / 16 MMSCMD 2012–13
TOTAL 5156 km / 130 MMSCMD

• 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 MMSCMD at present to over 300 MMSCMD and cover over 14,000 km.

Gas marketing

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 Natural Gas sold in the country. Of this, 37% is to the power sector and 26% to the fertiliser sector. GAIL is supplying around 60 MMSCMD 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, i.e., 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.

LNG

By the end of 2009–10, the gas consumption in India stood at 165 MMSCMD with LNG occupying 15% (25 MMSCMD) 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 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 play 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 MMTPA of LNG from Qatar for its Dahej Terminal on long term contract basis. PLL will also be importing 1.44 MMTPA 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 onto become a major importer of LNG in Asia. GAIL has so far imported 5 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 MMTPA of LNG on a medium term basis and has already received 3 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 MMTPA 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. Till now GAIL has signed 23 Master sales and Purchase Agreement (MSPA) with various LNG suppliers in its endeavor to source Spot & Medium Term from time to time. GAIL is also in talks to add 6 to 8 additional suppliers under the umbrella.

Liquid hydrocarbons

GAIL is marketing Gas Processing Unit's (GPU's) products namely liquefied petroleum gas, propane, pentane, naphtha and by-products of polymer plant namely MFO, propylene & hydrogenated C4 mix. LPG is being sold exclusively to PSU oil marketing companies (OMCs) while other products are sold directly to customers in 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 & commercial pentane used in EPS, PU, LAB industry.

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

MFO is mainly used as fuel for heating, paint spraying, furniture polishing etc. 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 (2 Units), Auraiya, Vaghodia, Usar, Lakwa & Gandhar plant for production of LPG and GCU at Pata plant for production of polymer. In the process of production of main products viz. LPG & polymer through GPU/GCU except Usar, the following by-products- liquid hydrocarbons (LHC) are produced:

LPG production and transmission

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. LPG is sold in bulk to LPG retailing companies such IOCL, BPCL, HPCL and other liquid hydrocarbon products are sold to industries.

GAIL is the first company in India to own and operate pipelines for LPG transmission. It has 1,900 km LPG pipeline network 1,300 km of which connects the western and northern parts of India and 600 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 MMTPA of LPG. LPG transmission through pipelines was 3337 TMT in the year 2010–11.

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

Petrochemicals

GAIL diversified from gas marketing and transmission into 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 year 1999 by rigorous teamwork and project management capabilities. The petrochemical business is one of the core focus area of GAIL.

GAIL has set up a world-scale gas cracker plant, petrochemical complex at Pata in Auraiya district of Uttar Pradesh with an investment of 25 billion (US$370 million). The plant has a design capacity to produce 100 TPA of ethylene (Expandable to 5 TPA). Downstream units include HDPE production unit of 1-TPA capacity and an LLDPE/HDPE swing plant of 16-TPA capacity. This complex recovers ethane-propane (C2/C3) from natural gas from Vijaipur through the HVJ pipeline for producing polymers. Conversion of ethane-propane (otherwise used as fuel) from natural gas will give tremendous value addition. 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 & G-Lene, GAIL has alongside augmented its name plate capacity of HDPE & LLDPE to 410,000 MTPA by adding another dedicated HDPE downstream polymerisation unit of 100,000 MTPA.

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 has set up a joint venture, Brahmaputra Cracker and Polymer Limited BCPL, to construct a Greenfield petrochemical plant in Assam. GAIL also has equity stake in OPAL petrochemical plant led by ONGC. Further, 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 MMTPA ethylene capacity at Dahej in the state of Gujarat.

Further, GAIL is working on augmentation of the installed capacity further by putting up new plants of HDPE/LLDPE by 500 KTA at Pata, which is targeted to be operational by FY 2013–14.

City gas distribution

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 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.

Exploration and production

GAIL is participating in 31 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 31 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 discovery 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, appraisal is in progress.

GAIL is an active member of multi-organisation team (MOT) set-up 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.

GAILTEL

GAILTEL, the Telecom & Telemetry services arm of GAIL (India) Limited, is providing communication services for its business critical pipeline Supervisory Control and Data Acquisition (SCADA), Enterprise Resource Planning (ERP) for automation of organisation-wide business processes/functions and inter/intra office communications apart from commercially leasing telecom services to telecom operators across India since 2001.

GAILTEL has a reach of around 13,000 km of OFC network along GAIL's reliable cross country pipelines (5,681 km) and state/national highway routes (7,346 km), connecting 150 towns/cities spanning across Rajasthan, Gujarat, Madhya Pradesh, Uttar Pradesh, Maharashtra, Andhra Pradesh, Karnataka, Tamil Nadu, Kerala and NCR.

GAILTEL services include long term lease of Dark Fibre and Duct under IRU, Tower space & collocation facilities and point-to-point leased line Bandwidth services. With SDH & DWDM as the core layer, GAILTEL network is built largely along the highly secured GAIL's cross country pipeline corridor and ensure highly reliable and error free service to its internal & external customers. The network is managed centrally on 24X7 basis from a state-of-art Network Management Centre at Noida. GAILTEL, today serves most of the Telecom operators of the country, which include Vodafone, TCL(VSNL), Bharti Airtel, Idea Cellular, Tulip Telecom, Tata Tele services, PGCIL, DEN Network to name a few.

Power

Ratnagiri Gas And Power Pvt. Ltd. (RGPPL) is a joint venture company between GAIL (India) Ltd, NTPC Limited, Indian Financial Institutions (IFIs) and MSEB Holding Company Limited. The promoters have incorporated and registered the company as a private limited company on 8 July 2005. The authorised share capital of the company is 20 billion and the shareholdings of GAIL, NTPC and IFI's are 28 1/3% each and MSEB 15%. The project is located at Ratnagiri district of Maharashtra state about 340 km south of Mumbai. The project has power generation capacity of 2150 MW along with an integrated 5 MMTPA LNG terminal. Primary fuel for the power plant is natural gas.

Alliances

GAIL has formed Subsidiaries and joint venture companies for city gas distribution and petrochemicals. GAIL is one of the pioneers to introduce City Gas Projects in India for gas supplies to households, commercial users and for the transport sector by forming subsidiaries/ joint venture companies.

Subsidiaries

GAIL Gas Limited

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 & Meerut in the 1st round of bidding by Petroleum & Natural Gas Regulatory Board (PNGRB). GAIL Gas has already started supply of CNG & PNG (industrial customers) in the city of Dewas from December 2009. Steel Pipeline laying work is in progress in the cities of Meerut, Sonepat & Kota. The gas supplies will commence shortly in these cities. The total approved investment in all these cities is approx. 4.35 billion (US$64 million) in phase-I. GAIL GAS is providing natural gas to approximately 350 industrial consumers in TTZ area (Agra and Firozabad) in Uttar Pradesh India. GAIL GAS has also started the CGD work in Bengaluru Karnataka recently.

Brahmaputra Cracker and Polymer Limited (BCPL)

GAIL has 70% equity share in BCPL, a subsidiary, 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 is setting up a 280,000 TPA polymer plant at an investment of 54.6 billion (US$800 million). Financial commitment to the extent of 30 billion (US$440 million) has been made and project execution is in progress.

GAIL Global (Singapore) Pte Limited

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.

Joint ventures

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 5 and 2 CNG stations in Gwalior and Ujjain respectively and domestic supplies to households. 6 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 equal partner.

Bhagyanagar Gas Limited (BGL)
BGL is operating 6 CNG stations in Vijayawada and 4 CNG stations in Hyderabad and one CNG station in Rajahmundery. BGL is supplying CNG in these 3 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 & Vijayawada. GAIL has 22.5% stake in the Company along with HPCL as equal partner.

Central U.P. Gas Limited (CUGL)
CUGL is operating 11 CNG stations in Kanpur and 2 CNG stations in Bareily. CUGL is supplying CNG to almost 32,000 vehicles in the two cities. CUGL commenced its domestic supply of PNG with connexions to 3000 households in Kanpur & Bareilly. CUGL has received authorisation from MoPNG for CGD in Kanpur, Unnao & Bareilly. GAIL has 25% stake in the Company along with BPCL as equal partner. CUGL has connected 50 commercial and 32 industrial units in both the cities.

Green Gas Limited (GGL)
GGL is operating 6 CNG stations in Lucknow and 3 CNG stations in Agra. GGL is supplying CNG in the two cities. GGL has tied up for commencement of domestic supply of PNG with connexions to households, commercial and industrial establishments. MoPNG has authorised GGL for CGD in Lucknow & Agra. GAIL has 22.5% stake in the company along with IOCL as 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 & its suburbs viz. NOIDA (Gautam Budh Nagar), Greater NOIDA, Gurgaon, Faridabad and Ghaziabad. IGL is supplying piped gas to around 200,000 domestic, 340 commercial, 20 small industrial consumers and CNG to over 300,000 vehicles through around 200 CNG stations in NCR. GAIL has 22.5% stake in the company along with BPCL as 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 & commercial consumers. It has received authorisation from MoPNG for CGD in Mumbai, District Thane including Navi Mumbai & Mira Bhayander. GAIL has 49.75% stake in the Company along with British Gas as 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 Pune including Pimpri, Chinchwad, Talegaon, Hinjewadi & Chakan areas. It has started 10 stations supplying CNG to nearly 5,000 vehicles. GAIL has 22.5% stake in the Company along with BPCL as equal partner.

ONGC Petro-additions Limited (OPaL)
GAIL is in the process of acquiring 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 MMTPA 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 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 MMTPA of LNG. PLL Dahej terminal in Gujarat has been expanded to 10 MMTPA capacity. PLL has successfully implemented a pilot project for supplying LNG through cryogenic road tankers. PLL is also coming up with a LNG terminal at Kochi, Kerala, with an initial capacity of 2.5 MMTPA, expandable up to 5 MMTPA and it is scheduled to be operational by end of 2011. GAIL has 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 MMTPA capacity. GAIL has 32.88% stake in the Company along with NTPC as 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 equal partner. The joint venture company is in the process of identifying projects in gas and other related areas in China.

Global presence

As a strategy of going global and further expanding global footprint, GAIL has formed a wholly owned subsidiary company, GAIL Global (Singapore) Pte Ltd. in Singapore for pursuing overseas business opportunities including LNG & petrochemical trading. GAIL has also established a wholly owned subsidiary, GAIL Global (USA) Inc. in Texas, USA. The US subsidiary has acquired 20% working interest in an unincorporated joint venture with Carrizo Oil & Gas Inc in the Eagle Ford shale acreage in the state of Texas. In addition to having two wholly owned subsidiaries in Singapore & USA, GAIL has a representative office in Cairo, Egypt to pursue business opportunities in Africa and Middle East.

GAIL is also an equity partner in two retail gas companies in Egypt, namely Fayum Gas Company (FGC) and National Gas Company (Natgas). Besides, GAIL is an equity partner in a retail gas company involved in city gas and CNG business in China – China Gas Holdings Limited (China Gas). Further, GAIL and China Gas have formed an equally owned joint venture company – GAIL China Gas Global Energy Holdings Limited for pursuing gas sector opportunities primarily in China.

GAIL is a part of consortium in two offshore E&P blocks in Myanmar and also holds participating interest in the joint venture company – South East Asia Gas Pipeline Company Limited incorporated for transportation of gas to be produced from two blocks in Burma (Myanmar) to China.

Corporate social responsibility

In terms of the guidelines issued by the Department of Public Enterprises, GAIL has allocated an annual budget of 2% of the previous year's profit after tax for CSR activities, which is effectively used for carefully chosen programmes. Socially useful programmes have been undertaken in GAIL since its inception in and around the areas adjoining its major work centres under the SCP/TSP Plan. But over the years, the scope of the CSR activities, the nature of programmes undertaken and the systems adopted for implementation of these programmes have been streamlined and strengthened and the work under SCP/TSP came under the wider scope of CSR. Today, CSR & sustainability development is accorded high priority in the organisational ethos and attempted to be interwoven in all the business activities and the projects that are being undertaken by the company. During the year 2010–11, the company has taken up programmes of a value of approximately 575 million (US$8.5 million) for implementation under the seven thrust areas, which include Community Development, Infrastructure, Healthcare/Medical, Skill Development/Empowerment, Educational Aids, Environment Protection, Drinking Water/Sanitation. For the year 2010–11 under the thrust area Community Development, programmes worth 157 million (US$2.3 million) are endorsed and the implementation of these projects is in progression.

GAIL (India) Ltd. extended its support for reconstruction & renovation of numerous public utilities/building which improved living standards not only for a person or family but for whole of the villages where this project was implemented. For the sustainable development of the whole community GAIL is also supporting integrated livelihood programmes in villages especially for small and Marginal farmers. This would be considered as a drop in the vast ocean but GAIL along with other Oil PSU's is contributing towards provision of LPG connexions to BPL families under Rajiv Gandhi Gramin LPG Vitrak Yojana. This collaborative combined effort of the Oil PSUs would be able to generate a huge wave in the ocean in UP region. GAIL believes that for providing better tomorrow for the community where it has its working the focus should be on the future of the community i.e. CHILDREN & STUDENTS. So in view of this belief GAIL is providing vehicles for distribution of Mid-Day Meal for underprivileged children of Government schools so as to encourage the young girls and boys to educate themselves for their better & secured life. GAIL in the minuscule of its efforts have tried to touch every aspect of life by providing Night shelters and blankets to villagers, adoption of destitute tribal children of the orphanage in the tribal area, generating Aids awareness & Behaviour Change Communication programme for truckers of national highways and providing school bus for physically challenged students. In just two years, more than 314,000 families have benefited from the programmes under Community Development.[12]

See also

References

External links

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