Natural gas is emerging as an increasingly important component of India’s energy mix. Several initiatives are under way to expand its use and develop infrastructure across the value chain. These efforts are in line with the country’s target to raise the share of natural gas in its energy mix. At the 42nd Annual General Meeting, Deepak Gupta, Chairman and Managing Director, and Director (Projects), GAIL (India) Limited, highlighted the key achievements and milestones of the company, and the future outlook. Edited excerpts…
Financial year 2025-26 underscored a fundamental reality, with energy security becoming as important as energy transition. Geopolitical tensions in the Middle East, particularly the disruption of liquefied natural gas (LNG) supply chains through the Strait of Hormuz, exposed the vulnerability of global energy markets to concentrated supply sources and critical maritime routes. The resulting volatility in LNG prices, freight rates and supply availability reinforced the need for diversified sourcing, resilient infrastructure and flexible supply chains. At the same time, the global transition towards cleaner energy continued unabated, with sustained investments in renewable energy, nuclear power, energy storage and low-carbon technologies. Natural gas, by virtue of its flexibility and lower carbon intensity, continued to play a critical role in enabling an orderly energy transition.
For India, the year reaffirmed the importance of a balanced and pragmatic energy strategy. While the country accelerated investments in renewable energy and emerging technologies, it also strengthened its natural gas infrastructure, expanded policy support for biofuels and city gas distribution (CGD), and introduced measures to enhance supply resilience during the geopolitical disruption. This balanced approach combining energy security, affordability and sustainability will remain central to India’s long-term energy transition.
GAIL’s performance during 2025-26
GAIL has been contributing significantly towards expanding the clean energy economy, balancing growth and the environment, as a pioneer of the sector. It considers financial strength as not just a measure of performance, but a critical enabler of sustainable growth, strategic agility and sustained value creation for shareholders. Despite a challenging global environment, the company delivered a steady financial performance during 2025-26. It reported a revenue from operations of Rs 1,386.97 billion, compared to Rs 1,372.88 billion in the previous financial year. Profit before tax stood at Rs 89.64 billion, while profit after tax was Rs 69.68 billion.
During the year, GAIL transmitted an average of approximately 122 million metric standard cubic metres per day (mmscmd) of natural gas through its pipeline network and marketed around 104 mmscmd of gas, which includes global sales.
As the operator of India’s largest natural gas pipeline network, GAIL continues to play a central role in developing the National Gas Grid. The company’s network now extends over 18,690 km, with nearly 1,500 km under construction. Upon completion of the ongoing projects, the network will expand to almost 20,000 km, significantly strengthening gas connectivity across India.
GAIL’s LNG sourcing portfolio currently stands at 16.56 million metric tonnes per annum (mmtpa), comprising a balanced mix of long-term contracts and market-linked procurement. During 2025-26, it imported 132 LNG cargoes, including seven spot cargoes, helping maintain supplies to priority customers despite considerable volatility in global markets.
To support this growing portfolio, GAIL is strengthening its shipping capabilities. Long-term charter agreements were concluded for GAIL Bhuwan with a capacity of 180,000 cubic metres, and Energy Fidelity with a capacity of 174,000 cubic metres. GAIL today has access to a fleet of nine LNG vessels, including five vessels under long-term charter, providing greater control over logistics and improved supply reliability.
The overseas subsidiaries continue to expand GAIL’s international capabilities. GAIL Global (USA) LNG LLC supports sourcing and liquefaction arrangements for its US portfolio, while GAIL Global (Singapore) Private Limited is strengthening LNG trading and international business. Further, GAIL Global IFSC Limited was established at GIFT City to support treasury management and explore opportunities in international financial services and ship leasing.
Key milestones
A landmark achievement during the year was recorded at the Dabhol LNG terminal. Following completion of the 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 the year. Considering the strategic importance of Konkan LNG Limited, the GAIL board approved a scheme for its merger with GAIL to support closer operational and strategic integration.
GAIL is also strengthening India’s LPG transmission network. It is expanding the capacity of the 1,427 km Jamnagar-Loni LPG pipeline from 3.25 mmtpa to 6.5 mmtpa. Further, the Petroleum and Natural Gas Regulatory Board has authorised GAIL to develop three new LPG pipelines totalling approximately 1,775 km: the Cherlapally-Nagpur pipeline, the Jhansi-Sitarganj pipeline and the Shikrapur-Goa and Hubli pipeline. These projects will strengthen India’s LPG supply chain and create a more cost-efficient and secure LPG transportation network.
Strengthening its presence in the petrochemicals segment, GAIL commissioned a 60 kilotonne per annum (ktpa) polypropylene (PP) unit in Pata, enhancing the integrated complex capacity from 810 ktpa to 870 ktpa. Further reinforcing its growth strategy, GAIL is progressing with the 500 ktpa propane dehydrogenation (PDH)-PP project in Usar, which will be India’s first PDH-based PP complex. The project, being developed with an estimated investment of Rs 112.56 billion, marks a significant milestone in expanding the country’s petrochemical manufacturing capabilities and reducing reliance on imports. In Mangaluru, work is progressing on GAIL Mangalore Petrochemicals Limited’s 1.25 mmtpa purified terephthalic acid plant, giving GAIL entry into a new petrochemical value chain.
These investments in petrochemicals are not simply about adding capacity. They are about developing a more diversified downstream business and strengthening the growth of GAIL’s petrochemical portfolio.
Selective upstream integration complements GAIL’s leadership in transmission and marketing. GAIL currently holds interests in eight domestic exploration and production (E&P) blocks, two E&P blocks in Myanmar, and one shale gas asset in the US. During 2025-26, the upstream business recorded its highest-ever gross turnover of Rs 11.57 billion.
CGD remains an important driver of India’s gas demand. Through subsidiaries and joint ventures, GAIL group companies are authorised in 72 geographical areas, serving approximately 10.9 million piped natural gas customers, and operate more than 3,400 compressed natural gas stations.
Compressed biogas (CBG) is another important growth area. As the nodal agency for the CBG-CGD Synchronisation Scheme, GAIL achieved its highest-ever CBG sales. Investment approval has been obtained for six new CBG plants, and the company is on the path to set up its targeted 26 CBG plants by 2030.
During the year, the board accorded in-principle approval for investments in two world-scale gas-based fertiliser plants in Maharashtra and Chhattisgarh. The projects involve a combined investment of approximately Rs 210 billion. These projects will contribute to India’s food security, create anchor demand for the pipeline network and support balanced regional development. GAIL is also exploring opportunities in critical minerals and has signed an MoU with Khanij Bidesh India Limited and Hindustan Copper Limited.
Focus on sustainability and safety
While natural gas remains at the heart of GAIL’s strategy, there is a need to extend beyond fossil fuels to sustainable energy sources by expanding its renewable energy portfolio. Alongside renewables, GAIL is building capabilities in green hydrogen, carbon management, energy efficiency and other low-carbon technologies. Further, sustainability is integral to the company’s long-term strategy, with the commitment to achieving net zero Scope 1 and Scope 2 emissions by 2035. The decarbonisation portfolio encompasses renewable energy, CBG, green hydrogen, energy efficiency, carbon management, battery storage and other emerging technologies.
Further, safety remains non-negotiable. Technology-based monitoring, advanced asset management and predictive maintenance applications are further strengthening the safety and integrity of operations.
The road ahead
The energy transition will neither be linear, nor shaped by a single fuel or technology. Natural gas will continue to support industrialisation, urbanisation, mobility, fertilisers and petrochemicals. LNG will strengthen supply diversity. CGD will bring cleaner energy closer to consumers. CBG will provide a renewable pathway while contributing to rural incomes and the circular economy. Petrochemicals will create opportunities for value addition and import substitution. Going ahead, renewable energy, battery storage, green hydrogen and carbon management solutions will assume increasing importance.
GAIL enters this period with significant strengths, including having the country’s largest natural gas pipeline network, a diversified LNG portfolio, expanding shipping capabilities, strong marketing capabilities, a nationwide CGD ecosystem, growing downstream businesses, deep project execution capabilities and an experienced team. GAIL’s strategic direction is, therefore, to expand the National Gas Grid, strengthen gas marketing, diversify LNG sourcing and shipping, expand petrochemicals and LPG infrastructure, support CGD and CBG development, progress fertiliser projects, and selectively explore upstream resources and critical minerals. At the same time, it aims to scale renewable energy, battery storage, green hydrogen and other low-carbon businesses in support of the net zero by 2035 commitment. Technology, artificial intelligence, research and innovation will aid in making GAIL safer, more efficient and more responsive. Further, financial prudence will remain fundamental for the company. Every investment will be evaluated for strategic relevance, risk, financial sustainability and long-term stakeholder value. GAIL’s ambition is to build a company that is stronger, more resilient, more diversified, technologically enabled and fully prepared for the opportunities of tomorrow, while remaining firmly anchored in the trust of its stakeholders.
“A balanced approach combining energy security, affordability and sustainability will remain central to India’s longterm energy transition.”
