GAIL announced that it has signed an agreement with Shell India on liquefied natural gas (LNG) for road transport, regasification of imported LNG, and renewables, among other things. The purpose of the MoU is to investigate opportunities in various aspects of the energy value chain. GAIL stated in a statement that this is a step towards improved sustenance in business operations. “In order to diversify the feedstock for its petrochemical plant, GAIL is looking to import ethane from ethane-surplus countries with matured export terminal infrastructure via water-borne transportation to India and transport it further via GAIL’s pipeline systems to demand centres,” the company said.
The MoU intends to investigate opportunities in the import and handling of various hydrocarbons that are important chemical and petrochemical precursors, LNG for road transport, regasification of imported LNG, renewables, and so on. GAIL acquired a 26% stake in the GAIL Bhuwan ship, LNG Japonica, during the December quarter (FY23). GAIL’s board of directors has approved a 50 KTA (kilo tonnes) Isopropanol unit (IPA) at Usar, where the PDHPP plant is already under construction, in order to diversify the company’s business.
The company raised 1,575 crore by issuing redeemable non-convertible debentures at a highly competitive rate, and incurred capex of around 6,278 crore during the nine months, primarily on pipelines, petrochemicals, operational capex, and so on, accounting for 79% of the annual target.