New Delhi: State-run gas utility GAIL (India) Ltd is planning a broad expansion of its natural gas infrastructure, LNG sourcing and shipping capabilities, petrochemical and LPG businesses, while simultaneously scaling up investments in renewable energy, green hydrogen, battery storage and other low-carbon technologies.
Addressing GAIL’s 42nd Annual General Meeting for FY 2025-26, Chairman Deepak Gupta said the geopolitical disruptions of the past year had reinforced the importance of energy security alongside the global transition towards cleaner energy.
The company’s strategy is centred on expanding the National Gas Grid, strengthening gas marketing, diversifying LNG sourcing and shipping, increasing downstream capacity and developing new clean-energy businesses.
Geopolitical Disruptions Highlight Need for Energy Security
According to Gupta, FY 2025-26 demonstrated that energy security has become as important as energy transition. Geopolitical tensions in the Middle East, including disruptions to LNG supply chains through the Strait of Hormuz, exposed vulnerabilities arising from concentrated supply sources and critical maritime routes.
The disruptions led to volatility in LNG prices, freight rates and supply availability, reinforcing the need for diversified sourcing, resilient infrastructure and flexible supply chains.
At the same time, investments in renewable energy, nuclear power, energy storage and other low-carbon technologies continued globally. GAIL believes natural gas, because of its flexibility and comparatively lower carbon intensity, will continue to play an important role in supporting the transition.
Read also: GAIL, DPA and DNV Sign Tripartite Agreement to Develop LNG Bunkering Facility at Kandla Port
GAIL Reports ₹1.39 Lakh Crore Revenue in FY26
Despite the challenging global environment, GAIL reported steady financial performance during FY 2025-26.
The company recorded ₹1,38,697 crore in revenue from operations, compared with ₹1,37,288 crore in the previous financial year. Profit Before Tax stood at ₹8,964 crore, while Profit After Tax was ₹6,968 crore.
The Comptroller and Auditor General of India also conveyed Nil Comments on GAIL’s financial statements for the 17th consecutive year, which the company said reflected its financial reporting, internal controls and governance standards.
During the year, GAIL transmitted an average of approximately 122 MMSCMD of natural gas through its pipeline network and marketed around 104 MMSCMD, including global sales.
Pipeline Network to Approach 20,000 Km
GAIL, which operates India’s largest natural gas pipeline network, is continuing to expand its infrastructure as part of the National Gas Grid.
Its pipeline network currently extends over 18,690 km, with nearly 1,500 km under construction. Once the ongoing projects are completed, the network is expected to reach almost 20,000 km, improving gas connectivity across the country.
The company has identified expansion of the National Gas Grid as one of its key strategic priorities going forward.
LNG Portfolio Stands at 16.56 MMTPA
GAIL’s LNG sourcing portfolio has reached 16.56 MMTPA, comprising a mix of long-term contracts and market-linked procurement.
During FY26, the company imported 132 LNG cargoes, including seven spot cargoes. GAIL said the diversified sourcing portfolio helped it maintain supplies to priority customers despite volatility in international markets.
The company is also strengthening its shipping capabilities. Long-term charter agreements have been concluded for GAIL Bhuwan, with a capacity of 180,000 cubic metres, and Energy Fidelity, with a capacity of 174,000 cubic metres.
GAIL currently has access to a fleet of nine LNG vessels, including five under long-term charter arrangements.
Overseas Operations and GIFT City Expansion
GAIL’s international operations are also being expanded. GAIL Global (USA) LNG LLC supports sourcing and liquefaction arrangements for its US portfolio, while GAIL Global (Singapore) Pte. Ltd. is strengthening LNG trading and international business.
The company has also established GAIL Global IFSC Limited at GIFT City, which will support treasury management and explore opportunities in international financial services and ship leasing.
Dabhol LNG Terminal Achieves Year-Round Operations
A major milestone was recorded at the Dabhol LNG Terminal during the year.
Following completion of its breakwater facility, the terminal achieved year-round operability and received its first LNG cargo during the monsoon season. It also received its 1,000th LNG cargo during FY26.
Given the strategic importance of Konkan LNG Limited, GAIL’s Board has approved a scheme for its merger with GAIL to enable closer operational and strategic integration.
LPG Pipeline Capacity to Double
GAIL is also strengthening India’s LPG transportation infrastructure.
The company is expanding the capacity of the 1,427-km Jamnagar-Loni LPG Pipeline from 3.25 MMTPA to 6.5 MMTPA.
In addition, the Petroleum and Natural Gas Regulatory Board has authorised GAIL to develop three new LPG pipelines with a combined length of approximately 1,775 km. These include the Cherlapally-Nagpur Pipeline, Jhansi-Sitarganj Pipeline, and Shikrapur-Goa and Hubli Pipeline.
The projects are expected to strengthen the LPG supply chain and improve the security and cost efficiency of LPG transportation.
Petrochemical Expansion Gains Momentum
GAIL is expanding its presence in petrochemicals as part of its strategy to diversify its downstream business.
The company commissioned a 60 KTA Polypropylene unit at Pata, increasing the integrated complex’s capacity from 810 KTA to 870 KTA.
At Usar, GAIL is progressing with a 500 KTA PDH-PP project, which will be India’s first propane dehydrogenation-based polypropylene complex.
The project involves an estimated investment of approximately ₹11,256 crore and is aimed at expanding India’s petrochemical manufacturing capabilities while reducing import dependence.
Work is also progressing on the 1.25 MMTPA PTA plant at Mangalore through GAIL Mangalore Petrochemicals Limited, giving the company an entry into another petrochemical value chain.
Upstream Business Records Highest-Ever Turnover
GAIL is maintaining selective exposure to upstream exploration and production activities.
The company currently holds interests in eight domestic E&P blocks, two E&P blocks in Myanmar and one shale gas asset in the United States.
During FY26, its upstream business recorded its highest-ever gross turnover of ₹1,157 crore.
GAIL is also exploring opportunities in critical minerals and has signed MoUs with Khanij Bidesh India Limited and Hindustan Copper Limited.
CGD Network Serves 109 Lakh PNG Customers
City Gas Distribution remains an important component of GAIL’s growth strategy.
Through its subsidiaries and joint ventures, GAIL Group companies are authorised in 72 geographical areas, serving approximately 109 lakh PNG customers and operating more than 3,400 CNG stations.
The company expects CGD to remain a key driver of natural gas demand as cleaner fuel expands across households, industries and transportation.
GAIL Expands CBG and Renewable Energy Focus
Compressed Biogas is another emerging growth area for GAIL.
As the nodal agency for the CBG-CGD Synchronisation Scheme, the company achieved its highest-ever CBG sales during FY26. Investment approval has been obtained for six new CBG plants, with GAIL targeting 26 CBG plants by 2030.
The company is also expanding beyond natural gas into renewable energy, green hydrogen, carbon management, energy efficiency, battery storage and other low-carbon technologies.
GAIL has committed to achieving Net Zero Scope 1 and Scope 2 emissions by 2035. Its decarbonisation portfolio includes renewable energy, CBG, green hydrogen, energy efficiency, carbon management and battery storage.
₹21,000 Crore Investment Planned for Fertiliser Projects
GAIL’s diversification strategy also includes major investments in the fertiliser sector.
The company’s Board has accorded in-principle approval for investments in two world-scale gas-based fertiliser plants in Maharashtra and Chhattisgarh, involving a combined investment of approximately ₹21,000 crore.
The projects are expected to contribute to India’s food security, create additional anchor demand for GAIL’s pipeline network and support regional development.
More Than 30 R&D Projects Underway
Technology and innovation are emerging as important components of GAIL’s long-term strategy.
The company’s R&D portfolio includes more than 30 collaborative research projects, while a state-of-the-art Research and Development Centre is being established at Sohna, Haryana.
GAIL has also invested in 44 startups, with a total fund allocation of ₹95.16 crore, of which ₹78.06 crore has already been disbursed.
The company has joined other oil and gas public sector enterprises to establish the MC2 Foundation, a common platform for innovation and entrepreneurship under the Ministry of Petroleum and Natural Gas.
CSR Initiatives Reach More Than 25 Lakh People
GAIL’s activities during FY26 also included social-sector initiatives.
The company’s CSR initiatives positively impacted more than 25 lakh people, while its GAIL Arogya programme provided healthcare services to more than 19 lakh beneficiaries.
GAIL Sets Out Five-Pronged Growth Strategy
Going forward, GAIL’s strategy will focus on strengthening its core natural gas business while building new sources of growth.
The company plans to expand the National Gas Grid, strengthen gas marketing, diversify LNG sourcing and shipping, expand petrochemical and LPG infrastructure, support CGD and CBG development, progress its fertiliser projects and selectively explore upstream resources and critical minerals.
At the same time, it plans to scale up renewable energy, battery storage, green hydrogen and other low-carbon businesses in support of its Net Zero 2035 commitment. Artificial Intelligence, research and innovation are also expected to play a larger role in making operations safer and more efficient.
Financial Prudence to Remain Central
Despite its ambitious expansion plans, GAIL said financial prudence would remain fundamental to its investment decisions.
The company intends to evaluate investments based on strategic relevance, risk, financial sustainability and their ability to generate long-term value for stakeholders.
Gupta said GAIL’s objective is to emerge as a stronger, more resilient, diversified and technologically enabled organisation, while contributing to India’s energy security and clean-energy transition.
The company also reiterated its commitment to governance, ethics and integrity. It said its governance framework is aligned with SEBI regulations and DPE guidelines, while noting that the composition of its Board and statutory committees remains affected by the non-appointment of the requisite number of independent directors.
About GAIL
GAIL (India) Limited is a Maharatna public sector enterprise under the Ministry of Petroleum and Natural Gas, Government of India. The company is one of India’s leading natural gas companies, with operations spanning natural gas transmission and marketing, LPG and liquid hydrocarbons, petrochemicals and other energy-related businesses. GAIL plays an important role in developing India’s natural gas infrastructure and supporting the country’s energy transition.
