We have MOVED!!

It is time to make a difference and in the effort to do so, we have changed the GAIL official blog site and updated it as well. We apologize for all the inconvenience caused but you will LOVE it! In a timeline format the official site has various widgets to make it easier for you to share what you enjoy reading!

GAILVoice.com is NOW the official blog site for GAIL India Ltd. The blog site gives you easy access to all our blogs and posts, which are updated daily. In a chronological order it is the best way to search for your favorites. We hope you like the new site, redesigned to be more ‘reader-friendly,’ informative and pictorial!  

This change is only for the better and shall not affect any of our content. For a first hand experience we welcome you to visit us@ www.GAILvoice.com and to subscribe to us @ http://www.gailvoice.com/connect/ for your DAILY DOSE of ENERGY!!

Although the announcement is delayed, we are really glad we could build an exclusive GAIL blog site to represent our organization better. Please do visit us and leave your valuable feedback for our posts! 

Gateway to India's Gas Market

GAIL (India) Limited has signed an LNG supply agreement with Gas Natural Fenosa, Spain. Under the agreement, GNF shall ensure a total supply of approx. 3 bcm (billion cubic meters) of LNG to GAIL over the next three years. The supply shall begin January 2013, and is the largest contract of the Spanish multinational in this region.

This Agreement with Gas Natural Fenosa is yet another effort by GAIL towards bridging the gap in demand supply of natural gas in the Indian market. This is in addition to other initiatives of GAIL towards LNG sourcing, creating LNG regasification infrastructure and augmenting transmission capacity significantly during the next two to three years. GAIL will continue to make assiduous efforts to tie-up affordable LNG in its portfolio to meet the rapidly growing energy demand of the Indian market.

Speaking on this occasion CMD GAIL, Shri B C Tripathi said, “the signing of the Gas Supply and Industrial cooperation agreements is a significant step as it augurs an enduring partnership between the two companies in working towards securing additional LNG volumes for long term energy security of India, exploring bigger opportunities along the Gas value chain both in India and abroad. This is a key milestone in the chapter of Indo-Spanish energy cooperation.”

In addition to the supply agreement, the two companies have signed an industrial cooperation agreement in order to explore joint development of energy projects in India. Gas Natural Fenosa and GAIL would collaborate opportunities in gas distribution, wholesale marketing and infrastructures in India as well as in projects abroad.

With this agreement, the Spanish multinational, will be able to establish a framework for cooperation with GAIL and leverage its expertise of operating in the energy markets of Spain, Latin America etc. in the promising Indian LNG market in the coming years. In the first half of 2012, the international activities of Gas Natural Fenosa represented 42.2% of EBITDA, compared to 34.4% in the same period of 2011.

A Multinational Leader in the Energy Sector

Gas Natural Fenosa is one of the leading multinational companies in the gas and electricity sector; it operates in 25 countries and has around 20 million customers and a 15.4 gigawatt power generation capacity.

It is the largest integrated gas and electricity company in Spain and Latin America, the leader in natural gas sales in the Iberian Peninsula and the biggest natural gas distributor in Latin America. With a fleet of 11 methane tankers, it is one of the largest operators of liquefied natural gas in the world and a company of reference in the Atlantic and Mediterranean basins, where it operates 30 bcm.

About GAIL (India) Limited

In order to meet the growing appétite of Indian market, GAIL has been expanding its global presence to secure long term gas supplies. GAIL earlier signed a 20 year Sales and Purchase Agreement with Sabine Pass Liquefaction LLC, a unit of Cheniere Energy Partners, USA for supply of 3.5 million tonnes per year of LNG. GAIL has also executed the Gas Sales Purchase Agreement with Turkmengaz for 38 MMSCMD for 30 year supply through the TAPI pipeline.

GAIL owns and operates over 9500 Km of high pressure cross country natural gas pipeline network and can handle 175 mmscmd. The company is in the process of significantly augmenting its pipeline network to reach every part of India. Within the next two to three years, GAIL will have a pan-India natural gas pipeline infrastructure spanning over 14,500 km and can handle volumes over 300 mmscmd. To secure import of LNG, GAIL is at an advance stage of commissioning 5 MMTPA LNG Terminal of RGPPL (a JV of GAIL) at Dabhol on the Western Coast of India.  GAIL ’s natural Gas Pipeline from Kochi is at an advanced stage of commissioning its phase-I which connects to Kochi LNG Terminal.  Recently, GAIL has been authorised to lay 1550 km natural gas pipeline from Western to Eastern Coast - Surat to Paradip Pipeline project.

Besides, GAIL has also set up a wholly- owned subsidiary company GAIL Global (Singapore) Pte. Ltd. in Singapore for sourcing LNG, and petrochemicals. GAIL has acquired 20% interest in Carrizo's Eagle Ford Shale acreage position in USA.

GAIL (India) Ltd., is India's principal Natural Gas Company with activities ranging from Gas Transmission and Marketing to Processing (for fractionating LPG, Propane, SBP Solvent and Pentane); transmission of Liquefied Petroleum Gas (LPG); production and marketing of Petrochemicals like HDPE and LLDPE and leasing bandwidth in Telecom sector. GAIL has extended its presence in Power, Liquefied Natural Gas (LNG) re-gasification, City Gas Distribution and Exploration & Production areas through equity and joint venture participations.  GAIL registered a turnover of US$7.9 billion and profit after tax of US$708 million for the year 2011-12. 

Q1 Turnover rises by 25%. Net Profit rises by 15%

GAIL (India) Limited registered an increase of 25% in Turnover (net of Excise) of Rs. 11,089 crore in the 1^st quarter of FY 2012-13 against Rs. 8,867 crore in the corresponding previous year quarter. The Profit before Tax increased by 17% to Rs. 1,685 crore in the 1^st quarter of the current financial year against Rs.  1,443 crore in the corresponding quarter of previous year. The Net Profit during the 1^st quarter of FY 2012-13 increased by 15% to Rs. 1,134 crore against `985 crore in the corresponding previous year quarter.

GAIL has shared Rs. 700 crore towards LPG subsidy in the first quarter of the current financial year as compared to Rs. 682 crore during the corresponding previous year quarter.

During the quarter, the net sales from Natural Gas Trading increased by 28 percent to Rs. 9,242 crore as against Rs. 7,205 crore in the corresponding quarter of the previous year. The revenue from Natural Gas Transmission during the first quarter of the current financial year has decreased by 2% to Rs. 915 crore as against Rs. 939 crore in the corresponding quarter of the previous year. The net sales from LPG and other Liquid Hydrocarbons business during the first quarter of the current financial year have increased by 32 percent to Rs. 1,072 crore as against Rs. 814 crore in the corresponding quarter of previous year. The revenue from LPG transmission remain flat at around Rs. 114 crore.

The increase in revenue is mainly due to higher sale of Spot LNG volume, increase in sales price of LPG and Liquid hydrocarbons & Petrochemicals.

The Natural gas transmission during the first quarter of the current financial year was 109.82 MMSCMD as against 117.16 MMSCMD in the corresponding quarter of the last year. The quantity of polymer sales was 66TMT against 88 TMT during the corresponding quarter in the previous year, LPG and other Liquid hydrocarbons sales were 322 TMT as against 349 TMT in the corresponding quarter in the previous year. The LPG transmission during the first quarter of the current financial year was 845 TMT as against 817 TMT during the corresponding quarter in the previous financial year. The quantity of polymer production was 80 TMT as against 109 TMT, LPG and other Liquid hydrocarbons production were 327 TMT as against 350 TMT in the corresponding quarter in the previous year. 

Relief of Rs. 1 lakh to Asiad Medalist Shanti Soundararajan

GAIL (India) Limited has offered Rs. 1 lakh in immediate Relief to Shanti Soundararajan, winner of the Asian Games Silver Medal. GAIL (India) Limited took this step following a Times of India report about the former Asian Games Medal winner having to work as a labourer. An officer of GAIL met Shanti Soundrarajan and conveyed the decision of the Company regarding the relief. GAIL has granted this relief on purely humanitarian considerations and its decision has no reflection on the issues of the case.  

Highest ever Turnover of Rs. 40281 Crores

GAIL India Limited clocks highest ever turnover of Rs. 40281 Crores in FY 2011-12

GAIL signs Gas Sales & Purchase Agreement for purchase of gas from Turkmenistan

GAIL (India) Limited on 23rd May, 2012 has signed a Gas Sales & Purchase Agreement (GSPA) for purchase of gas from Turkmenistan to be transported through the Turkmenistan-Afghanistan-Pakistan- India (TAPI) Pipeline. The GSPA was signed by Mr. B. C. Tripathi, CMD, GAIL and Mr.Sakhatmurad Mamedov, Chairman, National Gas Company, TurkmenGasin the presence of Shri S. Jaipal Reddy, Hon’ble Minister of Petroleum & Natural Gas, India.

The gas source for the pipeline would be Galkynysh (formerly Osman-Yolotan) in Turkmenistan which is estimated to have gas reserves of 13-21 TCM (Best estimates of 16 TCM). The 1680 km, 56 inch diameter pipeline will orginate at South Yolotan-Osman in Turkmenistan and will traverse 145 km in Turkmenistan, 735 km in Afghanistan and 800 km in Pakistan before entering India at Fazilka in Punjab.

Turkmenistán would be exporting 90 MMSCMD through this pipeline of which 14 MSCMD would be taken by Afghanistan and 38 MMSCMD each by India and Pakistan. The pipeline will be built at an estimated investment of US$ 7.6 billion approx.

India, the emerging gas hub - Part 1

Government support in the form of enabling regulation for new exploration and production, increasing prices, and infrastructure approvals, has helped the growth of the gas industry in India. 

	Recent regulations	Potential regulations under discussion/consideration
	New Exploration Licensing Policy (NELP I-VIII) Deregulation of LNG terminals 100 percent FDI in upstream Removal of customs duty on LNG	Open Acreage Licensing Policy (OALP) in lieu of NELP – to enable bidding for any acreage anytime, instead of for fixed blocks and at fixed timeslots  Policy for unconventional resources
	Open access gas carriage - Third party carriage allowed on pipelines with mandated 25 per cent extra capacity – Pipeline laying made competitive –‘Infrastructure’ status for pipelines	Pipeline tariff fixation methodology for the national gas grid Uniform postal tariff/uniform grid tariff to avoid cascading effect
	Arm’s length transactions between mid- stream and downstream companies NELP gas allocation as per Gas Utilisation policy Open access and private participation in power generation and distribution Nutrient based subsidy, import parity pricing and higher price allowance for fertiliser sector  ‘Infrastructure’ status for city gas networks	Tax rationalisation/introduction of GST Declared Goods Status for natural gas Peaking power regulation to enable time of day tariffs Evaluating national gas highways to promote gas
	Administered pricing mechanism (APM) Production sharing contracts (PSCs) Market price gas (MPG)	Price pooling