GAIL blueprint targets $11 bn revenue by 2011

GAIL blueprint targets $11 bn revenue by 2011
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First Published: Mon, May 21 2007. 04 10 PM IST
Updated: Mon, May 21 2007. 04 10 PM IST
PTI
New Delhi: State-run gas firm GAIL (India) Ltd has drawn a blueprint to almost triple its revenues to $11 billion (Rs44,660 crore) by 2011 by expanding its pipeline network and tying up new sources of natural gas.
GAIL chairman U. D. Choubey last week presented to his board a detailed roadmap to GAIL’s continue dominance in gas transportation and sale business even after other firms like Reliance Industries and GSPC enter the business next year.
“The blueprint, the first of its kind in a PSU, is landmark as it details a two-phase, segment-wise approach to raise revenues while giving each director time-bound goals,” an oil ministry official, privy to the presentation, said.
The blueprint aims at doubling GAIL’s pipeline network to 11,195-km by 2011 by building new pipelines to connect the nation’s LNG import terminals on the west coast and laying new lines to consumption centre in north and east. It also calls for tying up new gas supply sources to tripple volumes to 291 million standard cubic meters per day (mmscmd) by 2011.
The official said GAIL plans to raise revenues from gas trading from Rs9,552 crore presently to Rs16,475 crore in Phase-I (2009) and Rs25,630 crore in Phase-II. It plans to raise revenues from gas transmission from present Rs1,949 crore to Rs3,200 crore by 2009 and Rs6,015 crore by 2011.
City gas distribution projects, which contribute Rs1,300 crore to GAIL revenues presently, are envisaged to increase to Rs5,200 crore by 2011 as the company rolls out projects in 38 more cities.
Petrochemical revenues are envisaged to increase from Rs2,185 crore to Rs4,345 crore. The petroleum ministry official said Choubey has already initialed MoUs with Oil and Natural Gas Corp (ONGC) and Reliance Industries for transportation of natural gas they had found off the east coast through GAIL pipelines.
Besides, the company, which is an equity holder in Dahej LNG import terminal and under-construction Kochi terminal, is scouting for gas from overseas including from Oman, Algeria and Australia.
GAIL plans to raise its revenues from present Rs17,315 crore to Rs28,060 crore in Phase-I (2009) and to Rs45,629 crore in Phase-II (2011).
“Tasks for directors have been set,” he said.
Director marketing has been asked to firm up additional gas quantities from suppliers like ONGC, RIL, Shell, Cairn and GSPC by this year end and draw action plan for roll-out of city gas projects to supply piped gas to households and industries and CNG to automobiles within three months.
Director business development, besides doing road clearance work for seven pipelines projects, has been asked to source 5 million tons of LNG by this fiscal end. Expansion of Pata petrochemical plant, commissioning of Dabhol LNG terminal, Assam gas cracker project and a mega petochemical complex in the Middle East are other additional tasks.
“The roadmap draw is unique as never before has any chairman set himself targets to achieve in his tenure,” the official said.
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First Published: Mon, May 21 2007. 04 10 PM IST
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