GAIL (India) Ltd Share Price – NSE /  BSE

Gas Distribution, Mid Cap

GAIL (India) today signed a long-term time charter contract with Kawasaki Kisen Kaisha (K LINE) through the ship-owning company established in Singapore for a new-built LNG ship. “K” LINE has expertise of 40 years in LNG transportation.

The LNG ship will be a modern two-stroke vessel having a tank capacity of 1,74,000 cubic metres and will be built by Samsung Heavy Industries Co., Korea with which Ship Owning Company has concluded a shipbuilding contract.

This is the first long-term time charter contract between GAIL and “K” LINE involving a newly built vessel which is expected to be engaged in transportation of Liquified Natural Gas (LNG) for GAIL in 2027.

GAIL currently has four LNG vessels, GAIL Bhuwan, GAIL Urja, Grace Emilia and Maran Gas Pericles, to transport natural gas in a super cooled form. Two more ships are expected to join the fleet next year including one newbuilt vessel on long term charter.

GAIL has a diversified sourcing portfolio for over 15 MMTPA which includes supply sources from various geographies both on FOB and DES basis. The company's LNG fleet is deployed to lift volumes contracted on FOB basis primarily from the North American region and is transported to meet the domestic demand as well as international customers.

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The LNG ship will be a modern two-stroke vessel with a tank capacity of 174,000 cubic meters and will be built by Samsung Heavy Industries Co., Korea, with which the ship owning company has signed a shipbuilding contract.

This is the first long-term time charter contract between GAIL and “K” LINE involving a newly built vessel, which is expected to be engaged in transportation of liquefied natural gas (LNG) for GAIL in 2027.

Currently, the company has four LNG vessels, GAIL Bhuwan, GAIL Urja, Grace Emilia and Maran Gas Pericles, to transport natural gas in a super cooled form. Two more ships are expected to join the fleet next year including one newbuilt vessel on long term charter.

GAIL (India) is the largest state-owned natural gas processing and distribution company in India. The company has a diversified business portfolio and has interests in the sourcing and trading of natural gas, production of LPG, liquid hydrocarbons, and petrochemicals, transmission of natural gas and LPG through pipelines, etc. GAIL has also participated in interest in India and overseas in oil and gas blocks. The Government of India holds 51.92% in the paid-up equity capital of the company as of 30 September 2024.

The company’s consolidated net profit increased 10.13% to Rs 2,689.67 crore on a 2.7% rise in revenue from operations (excluding excise duty) to Rs 33,888.90 in Q2 FY25 over Q2 FY24.

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GAIL (India), through its wholly owned subsidiary GAIL Mangalore Petrochemicals (GMPL), has re-engaged with Process Licensor INEOS to support the plant's revitalization, formalizing this renewed collaboration through an Amendment Agreement.

This marks a significant step towards the revival of GMPL's 1.25 MMTPA Purified Terephthalic Acid (PTA) manufacturing plant located in the Special Economic Zone (SEZ), Mangalore.

This collaboration marks a pivotal development in the efforts to bring the PTA plant back into production. The original agreement with INEOS was executed by JBF Petrochemicals (JBF), which could not be realized due to insolvency proceedings. Following GAIL's acquisition of JBF through the Corporate Insolvency Resolution Process (CIRP) under the National Company Law Tribunal (NCLT) in June 2023, the company is now working to overcome the legacy challenges and ensure the plant's successful on-streaming and long-term operational stability.

The amended agreement with INEOS signed yesterday is expected to enhance the plant's operational efficiency, align production capabilities with market demand, and contribute to India's vision of self-reliance as part of the Government of India's Atmanirbhar Bharat initiative.

INEOS Group is a global manufacturer of petrochemicals, speciality chemicals and oil products.

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This marks a significant step towards the revival of GMPL’s 1.25 MMTPA purified terephthalic acid (PTA) manufacturing plant located in the special economic zone (SEZ), Mangalore.

This collaboration marks a pivotal development in the efforts to bring the PTA plant back into production. The original agreement with INEOS was executed by JBF Petrochemicals (JBF), which could not be realized due to insolvency proceedings. Following GAIL's acquisition of JBF through the Corporate Insolvency Resolution Process (CIRP) under the National Company Law Tribunal (NCLT) in June 2023, the company is now working to overcome the legacy challenges and ensure the plant’s successful on-streaming and long-term operational stability, it added.

The amended agreement with INEOS signed yesterday is expected to enhance the plant's operational efficiency, align production capabilities with market demand, and contribute to India’s vision of self-reliance as part of the Government of India’s Atmanirbhar Bharat initiative. INEOS Group is a global manufacturer of petrochemicals, speciality chemicals and oil products.

Speaking on the occasion, Chairman, GMPL and GAIL Director, Ayush Gupta said, “Through this strategic partnership and renewed focus, GAIL aims to position GMPL as a key player in the domestic PTA market while supporting the country’s growth in petrochemical manufacturing.”

GAIL Director (BD) R.K. Singhal said, “The successful realization of this project is expected to have a positive impact by reducing country’s import burden and strengthen India’s manufacturing capabilities in the petrochemical sector.”

GAIL (India) is the largest state-owned natural gas processing and distribution company in India. The Company has a diversified business portfolio and has interests in the sourcing and trading of natural gas, production of LPG, Liquid hydrocarbons and petrochemicals, transmission of natural gas and LPG through pipelines, etc. GAIL has also participating interest in India and overseas in Oil and Gas Blocks. The Government of India holds 51.92% in the paid-up equity capital of the company as on 30 September 2024.

The company’s consolidated net profit increased 10.13% to Rs 2,689.67 crore on 2.7% rise in revenue from operations (excluding excise duty) to Rs 33,888.90 in Q2 FY25 over Q2 FY24.

Shares of Gail (India) rose 0.74% to currently trade at Rs 196.45 on the BSE.

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