GAIL to invest Rs 5,350 crore in LPG pipeline expansion

The expanded pipeline will traverse five states — Gujarat, Rajasthan, Haryana, Delhi, and Uttar Pradesh — enhancing the country's energy infrastructure and meeting the rising demand for petroleum products.
Image used for representational purposes (File Photo | PTI)
Image used for representational purposes (File Photo | PTI)
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NEW DELHI: State-owned GAIL (India) Limited has announced an investment of ₹5,350 crore to expand the capacity of its 1,107-km Jamnagar–Loni LPG pipeline. The expanded pipeline will traverse five states — Gujarat, Rajasthan, Haryana, Delhi, and Uttar Pradesh — enhancing the country's energy infrastructure and meeting the rising demand for petroleum products.

In a press release issued on Thursday, the company stated, “LPG transmission through pipelines is safer, more energy-efficient, and environmentally sustainable compared to transportation by road tankers. The pipeline will also contribute to reducing the carbon footprint, supporting the country’s net zero targets.”

In addition to the LPG pipeline expansion, GAIL’s board has approved the construction of a 114 km natural gas spur line from its Vijaipur plant to the BPCL refinery complex in Bina, Madhya Pradesh. The project, with an estimated cost of ₹450 crore, will support the ongoing expansion of the refinery and the development of a new petrochemical facility at the site.

GAIL has also received approval to establish a Compressed Biogas (CBG) plant in Sultanpur, Uttar Pradesh. The facility will utilize agri-based feedstock to produce 20 tonnes of CBG per day, along with 88 tonnes of Fermented Organic Manure (FOM) daily. Designed with a zero-wastewater discharge system, the project aims to promote circular economy practices and sustainable agriculture, reinforcing GAIL’s commitment to green energy initiatives and environmental sustainability.

The company has outlined a capital expenditure (capex) plan of ₹12,000 crore for FY 2026–27. This includes ₹4,000 crore for pipeline projects, ₹2,500 crore for petrochemical projects, ₹200 crore for city gas distribution, ₹500 crore for exploration and production (E&P), and ₹1,400 crore for operational expenditure. For the current financial year 2025–26, GAIL estimates its capex at ₹10,700 crore, up slightly from ₹10,512 crore incurred in FY 2024–25.

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