GAIL (India) Ltd. (GAIL) was incorporated in August 1984 as a Central Public Sector Undertaking (PSU) under the Ministry of Petroleum & Natural Gas (MoP&NG), with the mission of accelerating and optimizing the effective and economic use of Natural Gas and its fractions for the benefit of the national economy. As a Public Sector Undertaking, the President of India holds more than 57% of the shares the company. GAIL (India) Limited, India’s largest Natural Gas Company is one of the seven Maharatna Public Sector Undertakings (PSUs) and the youngest PSU to be accorded Maharatna status.
The company was initially given the responsibility of construction, operation and maintenance of the 1800 Km long cross country Hazira - Vijaypur – Jagdishpur (HVJ) Natural Gas pipeline project. At that time, it was one of the largest cross-country Natural Gas pipeline projects in the world.
GAIL, having started as a Gas Transmission Company during the late eighties, has grown organically by building a large network of Natural Gas pipelines covering over 11,000 km; two LPG Pipelines covering more than 2,000 km; six Gas Processing plants for production of LPG and other liquid hydrocarbons, with a combined production capacity of 1.39 MMTPA, and a gas based integrated petrochemical plant of capacity 410,000 TPA of polymer, which is further being expanded to installed capacity of 810,000 TPA. The Company also has 70% equity share in Brahmaputra Cracker and Polymer Limited (BCPL) which is setting up a 280,000 TPA polymer plant in Assam. Further, GAIL is a co-promoter with 15.5% equity stake in ONGC Petro-additions Limited (OPaL) which is implementing a green field petrochemical complex of 1.4 MMTPA polymer capacity at Dahej in the State of Gujarat.
Keeping in mind the growth and consolidation requirements, the company has integrated upstream into the business of Exploration & Production with participating interests in several blocks awarded under New Exploration Licensing Policy (NELP) bidding rounds of Government of India. GAIL is currently participating in 15 E&P Blocks, in basins such as Assam-Arakan (2), Andaman (1), Cambay (4), Cauvery (2), Gujarat Kutch (2), Mahanadi (1), Myanmar (2) and Rajasthan (1). GAIL has partnership in these blocks with various companies such as ONGC (3), OIL (1), GSPC (2), BPRL (1), Hardy Exploration & Production (1), JOGPL (1), ENI (1) and Daewoo (2) as Operators. Out of these 15 E&P blocks, 2 blocks are overseas (A-1 and A-3 blocks in Myanmar).
Hydrocarbon discoveries are in place in 7 E&P blocks. Blocks with hydrocarbon discoveries are: CB-ONN-2000/1, CB-ONN-2003/2 (Cambay Onland in Gujarat), Block A-1 and A-3 Myanmar, AA-ONN-2002/1 (Tripura Onland), MN-OSN-2000/2 (Mahanadi Offshore) and CY-OS/2 (Cauvery Offshore).
Production of crude oil is in progress from Cambay Onland blocks CB-ONN-2000/1 and CB-ONN-2003/2 @ 800 barrels per day. Production of gas is in progress in 2 blocks in Myanmar (A-1 & A-3). Development activities have been initiated in Tripura Onland Block (AA-ONN-2002/1).
GAIL is also a member of National Gas Hydrate Programme (NGHP) being coordinated by DGH and is actively involved in activities related to Gas Hydrate exploration.
GAIL has also integrated downstream into the high growth retail City Gas Distribution business both in India and abroad. GAIL is today an integrated energy company in the hydrocarbon sector with focus on gas and beyond.
Global context and International forays
GAIL has overseas presence in five countries. The Company has a wholly owned subsidiary, GAIL Global (USA) Inc. (GGUI) in USA. This US subsidiary has formed a JV with Carrizo Oil & Gas Inc. to acquire stake in its Eagle Ford Shale acreage. GGUI has formed subsidiary, GAIL Global (USA) LNG LLC (GGULL) which has booked 2.3 MMTPA capacity in Dominion Cove Point LNG liquefaction project and also signed a Gas Sale and Purchase Agreement (GSPA) with WGL Midstream Inc. for procurement of corresponding volume of Natural Gas.
GAIL has another wholly-owned subsidiary company viz. GAIL Global (Singapore) Pte. Ltd. in Singapore for trading in LNG & Petrochemicals and for undertaking overseas investments.
GAIL is equity partner in A-1 & A-3 E&P blocks in Myanmar where GAIL has 8.5% participating interest. Besides, GAIL has 4.2% equity partnership in South East Asia Gas Pipeline Company (SEAGP) which is transporting gas from Myanmar to China from these blocks. GAIL has made investments in three companies in downstream business in Egypt and China.
GAIL has executed a long-term LNG Sale and Purchase Agreement with Sabine Pass Liquefaction LLC for purchase of 3.50 Million Tons per Annum (MMTPA) of LNG from Sabine Pass Liquefaction terminal project located in Cameron Parish, Louisiana, USA. GAIL has also signed a long-term agreement with Gazprom marketing and Trading Singapore for supply of 2.5 MMTPA of LNG from Russia.
GAIL has also signed a GSPA to source 38 MMSCMD of natural gas through transnational pipeline from Turkmenistan and is scouting for opportunities along natural gas value chain in North America, Africa and South East Asia.
