GAIL Gas Ltd – Providing Natural Gas Solutions to India
Global development and the consequent insatiable demand for energy have led to a rather paradoxical situation. The more energy we consume to power our growth, the more we push our planet towards an existential crisis. Global warming, health hazardous air pollutants, oil contaminated water – these are issues that often make screaming headlines in our newspapers. Reining in growth is not an option and the solution lies in harnessing a more environment friendly energy alternative like natural gas.
The Undisputed Leader
Gail Gas Limited, a wholly owned subsidiary of Gail, the Navratna public sector undertaking, has played a leading role in ensuring that clean, convenient and cheap fuel is made available to households, small commercial establishments and vehicles across the country. The company has concentrated on setting up City Gas Distribution systems that provide Piped Natural Gas to households and commercial establishments as well as CNG to the transport sector.
The first foray was made with pilot projects in cities like Delhi and Maharashtra in the 1990s by GAIL. This was before the formation of Gail Gas Limited. The successes achieved were both tangible and intangible. Natural gas provides a more economical option, thus expanding household budgets and improving the bottom line of small business establishments. It also brought down pollution levels in these cities. The result was an overall improvement in the quality of life. Soon joint venture companies were set up in Pune, Mumbai, Agartala, Lucknow, Bhopal, Kanpur, Hyderabad and Agra.
With environment friendly natural gas making inroads as a viable fuel alternative, there was increasing competition in the City Gas Distribution sector. Gail then decided to set up Gail Gas Limited in 2008 to focus exclusively on this sector. The cities under operation of Gail Gas Limited include Dewas, Kota, Sonepat and Meerut. It is now extending its reach to Kerala with the setting up of Kerala Gail Gas Limited, a joint venture of the Kerala State Industrial Development Corporation (KSIDC) and GAIL.
The GAIL Expertise
From its inception in 1984 to date, GAIL has worked consistently on its mission to ensure the development of the natural gas market in the country. Over the years, Gail has also successfully widened its horizons. It initially started as a natural gas pipeline company. Today, it is recognised as a global integrated gas company with an 8000 km network of trunk pipelines criss-crossing the country carrying more than 160 mmscmd (Million Metric Standard Cubic Meter per Day) of natural gas to customers across the country. The company was ranked the top gas utility company in Asia and the second globally in the 2010 Platts Global Ranking of Energy Companies. In the 2012 rankings, Gail was included among the 50 fastest growing companies.
Gail works across all aspects of the natural gas value chain, making the company a one-stop, integrated and seamless provider of the country’s burgeoning need for natural gas. This includes physical exploration, production, transmission, distribution and marketing. The $2.7 billion company today sells 51 percent of the natural gas sold in the country. More than half of this is used by vital infrastructure sectors like power (37%) and fertilizer (26%).
Being a wholly owned subsidiary, Gail Gas Limited has access to Gail’s valuable expertise, sophisticated infrastructure and extensive network. This gives the company a competitive edge over others in this field.
The Green Corridors of the Future
Gail Gas Limited pipelines carrying clean fuel are creating “green corridors” that link together gas fields, LNG terminals and major consumption centres. This kind of sustainable growth powered by an earth-friendly fuel is the buzzword for the future. Gail Gas Limited, with its natural gas solutions that reach homes and business establishments all over the country thus plays a vital role in nation building.