New Delhi: Gas Authority of India Limited (GAIL) is set to aggressively expand its gas transmission volumes to 133-134 MMSCMD by FY27, driven by a dual strategy of securing additional regasification capacities and scaling up its Dabhol LNG terminal to 10-12 MMTPA.
Dual-Track Strategy: Regasification Tie-Ups and Dabhol Expansion
According to Rakesh Kumar Jain, GAIL Director (Finance) and CFO, the company is actively negotiating with multiple terminal operators to secure incremental regasification slots. This third-party tie-up strategy provides flexibility and helps match LNG import volumes with market demand without heavy capital expenditure on new facilities.
At the same time, GAIL’s Dabhol LNG terminal, currently operating at 5 MMTPA nameplate capacity but constrained to 50% utilisation due to the absence of a heating system, is slated for significant expansion. The heating system is expected to be operational by FY26-27, enabling full utilisation. Plans are underway to expand Dabhol beyond 6.5 MMTPA and eventually scale it to 10-12 MMTPA to meet growing gas demand.
Projected Volume Growth and Market Drivers
The targeted increase of 8-10 MMSCMD over FY25-26 estimates (123-124 MMSCMD) will be supported by:
- City Gas Distribution (CGD) growth of 3-3.5 MMSCMD.
- Power sector recovery, returning approximately 3 MMSCMD lost due to monsoon-induced demand drops.
- New pipeline connectivity, including Srikakulam-Angul and MNJPL (Mundra-Nagpur-Jaipur Pipeline) projects, contributing ~2 MMSCMD.
- Refinery normalization, expected to restore 2-3 MMSCMD of volumes.
- Rehabilitation of monsoon-damaged pipelines, recovering 1-1.5 MMSCMD of stranded gas.
Strategic Importance of Dabhol Terminal
Dabhol’s expansion is particularly critical due to its strategic location in Maharashtra and GAIL’s operational control, offering an advantage over third-party regasification slots that may face competing demand. Jain emphasized that the expansion aligns with India’s growing natural gas consumption and GAIL’s long-term commitment to ensuring energy security and infrastructure readiness.
About GAIL
GAIL (India) Limited, a public sector undertaking under the Ministry of Petroleum and Natural Gas, is India’s leading natural gas transmission and distribution company. The company plays a pivotal role in enhancing energy security, expanding LNG infrastructure, and supporting the country’s industrial, power, and city gas sectors while promoting sustainable and reliable gas supply across India.
