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GAIL looks east for expansion, to source LNG from abroad

GAIL chairman B. C. Tripathi said the company would be sourcing more liquefied natural gas (LNG) from abroad to fill the gap in domestic demand.

GAIL (India) has clocked a 20 per cent increase in the production of petrochemicals during the first half of the current financial year (April-September) to 231,000 tonnes up from 193,000 tonnes in the corresponding period last year. The petrochemical sales during the first half of the current financial year increased to 229,000 tonnes up by 37 per cent, as against 167,000 tonnes in the corresponding period of the previous year, GAIL chairman B. C. Tripathi said.

The LPG and Other Liquid Hydrocarbon production during the first half of the current financial year was 685,000 tonnes as against 684,000 tones in the corresponding period last year.

The natural gas transmission during the first half of the financial year was 97.25 million standard cubic metres per day (MMSCMD), as against 107.72 MMSCMD last year due to the decline in natural gas production in the country.

Tripath said GAIL would be sourcing more liquefied natural gas (LNG) from abroad to fill the gap in domestic demand. GAIL plans to charter six to seven LNG ships for transporting its natural gas cargoes from the US from 2017 to meet the shortfall in domestic production.

Tripathi also added that as part of its expansion plans, GAIL is also looking at city gas distribution in Bihar. It would also consider setting up a power plant in Bihar as a joint venture with the state government. Moreover, GAIL has signed a Gas Cooperation Agreement (GCA) for Natural Gas Infrastructure and City Gas Distribution with the Bihar government. GAIL is also constructing the 2,050 km.

Haldia - Jagdishpur pipeline for transmission and distribution of natural gas. Over 621 km of this line will pass through 14 districts of Bihar.

GAIL will also work with the industries department of Bihar to promote a joint venture for city gas distribution projects for domestic, commercial, industrial and transport sectors. This will see the participation of GAIL or its wholly owned subsidiary GAIL Gas Limited and concerned departments of the Bihar Government, other state agencies or private players.

Courtesy: Mail Today