GAIL India’s Chairman, Mr. Sandeep Kumar Gupta, expressed optimism about the energy sector’s prospects under US President Donald Trump’s second term, citing potential benefits for oil and gas availability. Speaking at the World Economic Forum Annual Meeting, Gupta highlighted GAIL’s ambitious growth plans and shared expectations for the upcoming Union Budget.
Key Highlights:
- Energy Sector Outlook:
- Gupta anticipates that Trump’s policies to boost oil and gas exploration in the US will eventually ease global energy prices, though this may take time due to paused LNG export facilities.
- Current high energy prices are expected to persist in the near term.
- GAIL’s Expansion Plans:
- GAIL plans to increase its annual capital expenditure to Rs 10,000-12,000 crore over the next 3-5 years.
- Ongoing projects include the Kochi-Mangalore-Bangalore pipeline, the Gurdaspur-Jammu pipeline, and other natural gas infrastructure developments.
- The Usar Propane Dehydrogenation Polypropylene unit and the Mangalore PTA facility are set to be operational this year, adding significant petrochemical capacity.
- Net-Zero Commitment:
- GAIL has advanced its net-zero target from 2040 to 2035, with an estimated expenditure of Rs 38,000 crore.
- Union Budget Expectations:
- Removal of the 14% excise duty on CNG compression charges, which Gupta views as a burden on consumers.
- Advocacy for the inclusion of natural gas under GST, to simplify the tax structure and promote cleaner energy.
With a focus on expanding pipelines, enhancing petrochemical capacity, and achieving sustainability goals, GAIL is poised for significant growth in the coming years.
GAIL (India) Limited is the largest natural gas transmission and marketing company in India, driving energy efficiency and sustainability. It is expanding its infrastructure and petrochemical capacity while targeting net-zero emissions by 2035.
