GAIL’s LNG Contract with Sabine Pass; first shipment bound for India flagged off from Sabine Pass by C&MD GAIL
March 5, 2018. HOUSTON and March 6, 2018 NEW DELHI : Mr. B C Tripathi, Chairman & Managing Director, GAIL flagged off GAIL's first USA sourced LNG cargo from Sabine Pass LNG export facility in Louisiana on 5th March 2018. The cargo has been loaded on-board GAIL's first chartered LNG ship "Meridian Spirit". This LNG cargo originated from Cheniere Energy's LNG export facility at Sabine Pass LNG project. The cargo will discharge LNG at Dabhol terminal of GAIL on or around 28th of this month.
The ship set sail after a ceremony to mark the occasion at Sabine Pass in the presence of Cheniere CEO Mr. Jack Fusco and GAIL Chairman and Managing Director Mr. B. C. Tripathi, who were joined by Consul General of India in Houston, Dr Anupam Ray, as well as representatives from Cheniere and GAIL.
The LNG SPA, which was signed in December of 2011, commenced on March 1, 2018. Under the terms of the SPA, GAIL would purchase approximately 3.5 million tonnes of LNG per year from Sabine Pass.
"The commencement of this agreement marks the start of a long and productive relationship between Cheniere and GAIL," said Mr. Fusco. "GAIL is one of the foundation customers of Cheniere having signed the contract in 2011 and India remains an important market for LNG, and one that we hope will continue to show signs of growth. We look forward to decades of mutually beneficial cooperation between Cheniere and GAIL, the leading natural gas company of India. "
"With supplies commencing from US, GAIL will have a diversified portfolio both on price indexation and geographical locations," said Mr. Tripathi. "This long term agreement would go in a long way in strengthening relationship between GAIL and Cheniere and reinforcing India-US trade ties," he added.
GAIL is India's leading natural gas company with diversified interests across the natural gas value chain of trading, transmission, LPG production & transmission, LNG re-gasification, Petrochemicals, City Gas, E&P, etc. GAIL is expanding pipeline network by about 5000 kms. at an investment of over $ 3 billion to operate over 16,000 kms by 2020. GAIL commands 75% market share in gas transmission and has a Gas trading share of over 50% in India. It also has a growing international presence through subsidiaries in the USA and Singapore. It is also planning to invest over a billion dollars into its City Gas Distribution projects.
Commencement of LNG supplies from Sabine Pass are significant under the contract for India as it shall immensely support Hon'ble Prime Minister's vision of taking India towards a gas based economy and expanding Natural Gas footprints in our economy.
Hon’ble CM, Uttarakhand launches “GAIL Utkarsh Super 100” programme to train students from underprivileged families to enter IITs, NITs
GAIL and CSRL to establish two centres in state
Dehradun, February 13, 2018March 5, 2018: On the auspicious occasion of Deepawali, Shri Dharmendra Pradhan, Hon’ble Minister for Petroleum & Natural Gas and Skill Development & Entrepreneurship today launched the commencement of Piped Natural Gas (PNG) supply to residents of Bhubaneswar.
Meritorious children from underprivileged families in Uttarakhand can now dream of studying in prestigious Indian Institutes of Technology and other top engineering colleges. Uttarakhand Government, GAIL (India) Limited and Centre for Social Responsibility and Leadership (CSRL) came together today to establish two centres in Kumaon and Garhwal regions to benefit such students.
Hon’ble Chief Minister of Uttarakhand Shri Trivendra Singh Rawat launched the “GAIL Utkarsh Super 100” programme, a Corporate Social Responsibility (CSR) initiative of GAIL, in the presence of Hon’ble Minister of State for Higher Education (Independent Charge) Shri Dhan Singh Rawat and GAIL Chairman and Managing Director Shri B C Tripathi.
GAIL (India) Limited, the country’s premier natural gas company, has actively implemented a slew of CSR initiatives in Uttarakhand. The two centres will be established under GAIL’s Project Utkarsh which is a flagship CSR programme of GAIL aimed at deserving students from marginalized communities. Fifty students will be provided training in each of the two new centres.
CSRL had established its first center in 2007 in Kanpur in collaboration of GAIL. It provides all-expenses paid, specialized residential coaching and intensive mentoring so that they can compete for engineering entrance examinations such as Indian Institute of Technology – Joint Entrance Examination, Uttar Pradesh Technical University, etc.
Since its inception in 2009-10, 690 students have been trained under GAIL’s patronage, of which 598 have been selected – 125 in IITs and 473 in NITs and other engineering colleges. Some students from the initial batches are now employed in top organisations such as Wipro, TCS, Larsen & Toubro, ISRO, Infosys and Coal India Limited.
Meanwhile, CSRL has scaled up from one center to 15 centers across nine states.
RailTel, a Government of India PSU, and CSRL had collaborated to establish RailTel Akansha Super 30 in Dehradun in 2015 which has successfully guided students to get admission into IITs, NITs and various other prestigious institutions. With the addition of the GAIL centres, the number of CSRL centers in Uttarakhand will increase from one to three.
GAIL’s Profit after Tax Rs. 1,262 crore up by 28% for Q3 of FY 2017-18 on year-on-year basis PBT Rs. 1,858 crore up by 25%; Gross Margin Rs. 2,273 crore up by 14%
New Delhi, February 12, 2018: : GAIL (India) Limited registered a 28% increase in Profit after Tax (PAT) in the third quarter of Financial Year 2017-18, as against the corresponding quarter in last fiscal, mainly due to the better performance by Liquid Hydrocarbon (LHC), Gas Marketing & Transmission Segments. The Company’s PAT for the quarter ending 31st December 2017 rose to Rs. 1,262 crore from Rs. 983 crore in the corresponding quarter of the last fiscal. Profit before Tax (PBT) for the third quarter increased by 25% to Rs. 1,858 crores against Rs. 1,484 crore in the corresponding quarter of the last fiscal.
Natural Gas Transmission & Marketing volumes increased by 6% each, Petrochemicals Sales by 21%, Liquid Hydrocarbon Sales by 10% & LPG Transmission by 2% in the third quarter, as compared to the corresponding quarter in previous year.
Similar physical growth in all the segments was recorded for nine months, ending Dec’17 resulting in increase of 31% in PAT (after excluding gain in the previous fiscal from stake sale in Mahanagar Gas Limited ) to Rs. 3,597 crore.
The Board of Directors have recommended, for approval of the shareholders, issue of Bonus Shares in the ratio of One equity shares of Rs 10/- each for Three existing equity shares of Rs 10/- each.
Shri B C Tripathi, Chairman & Managing Director, GAIL (India) Ltd said “All the segments have registered physical growth as compared to previous year, which is reflected in both the top line and the bottom line of the company. Along with the operational growth, company is also increasing its Natural Gas pipeline infrastructure. Similarly CGD infrastructure is also being expanded together with our subsidiary and joint ventures. We are confident to meet the Capex target of current fiscal year which is more than 70% achieved last year. Similar growth in Capex is planned in the next fiscal 2018-19 to around Rs 6000 crore.”
GAIL fast-tracks work to feed gas to Pradhan Mantri Urja Ganga pipeline GAIL places order of Rs. 440 crore for 350 km Vijaipur (UP) – Auraiya (MP) spurline Rs. 3500 crore Capex for City Gas Distribution in FY 2018-19 by GAIL Group companies to fulfill Hon’ble PM’s target of 1 crore PNG connections by 2020
New Delhi, 02nd February, 2018: GAIL (India) Limited has placed order of Rs. 440 crore for laying of approx. 350 Kms of pipeline from Vijaipur (in the state of Madhya Pradesh) to Auraiya (in the state of Uttar Pradesh). This is a part of the spurline of approx. 665 km length from Vijaipur to Phulpur (in the state of Uttar Pradesh) to the existing HVJ-DVPL upgradation pipeline system. The pipeline laying contracts for 315 km stretch from Auraiya to Phulpur was earlier awarded during November 2016.
The Vijaipur to Phulpur pipeline shall provide the gas feed to the ongoing prestigious 2655 Km long Jagdispur-Haldia-Bokaro-Dhamra pipeline (JHBDPL) project of GAIL, also known as the ‘Pradhan Mantri Urja Ganga’ project, inaugurated by Hon’ble Prime Minister of India in July 2015. The JHBDPL will pass through the state of Uttar Pradesh, Bihar, Jharkhand, West Bengal and Odisha, and the project is progressing in full swing which will usher Industrial development in East India by supplying environmentally clean Natural Gas to Fertilizer & Power plant, Refineries, Steel plants, City Gas Distribution and other Industries.
Shri B. C. Tripathi, CMD, GAIL (India) Ltd. said that “ GAIL has awarded contracts of Rs. 5400 crore in the current fiscal year which includes Rs 3500 crore for procurement of pipeline and Rs. 1900 crore for laying of pipes. GAIL has awarded till date contracts worth Rs. 7500 crore for ongoing pipeline projects of around 4000 kms in south and eastern India. The two major ongoing projects i.e. Kochi-Kottanad-Mangalore project in Kerala and Karnataka state and JGBDPL projects are progressing well.”
Shri Tripathi emphasized that “GAIL is committed to complete both the projects well within scheduled time and cost. The two projects will form a vital part of National Gas Grid and also provide huge employment opportunities. The pipe line will provide impetuous to economic development in the area.”
Shri Tripathi outlayed GAIL group’s plan for CGD sector by stating that “GAIL along with its subsidiaries and JV’s are fully geared up to fulfill Hon’ble Prime Minister’s target of 1 crore PNG connections by 2020. Capex in the current fiscal year has increased by more than 50% in the CGD sector. In the current financial year 2017-18 GAIL along with its subsidiaries and JV’s have issued Orders of Rs. 2200 crore for various city gas projects across the country.”
He further added that “All the Group companies have made detail plan for expansion of City gas infrastructure in coming years. Accordingly, the Boards of respective companies have approved Capex of Rs. 3500 crore for FY 2018-19. The outlay will be increased after PNGRB’s IX & X bidding round for 142 new cities. The focus on CGD sector will help in curbing pollution by providing clean fuel to households, transportation sector, small industries and commercial establishment.”
GAIL commences construction work for the West Bengal stretch of Prime Minister Urja Ganga Pipeline Project
New Delhi, 29th January 2018: GAIL (India) Limited has started pipeline construction work in the state of West Bengal for providing gas supply to Matix Fertilizers, Durgapur. This project is being executed as a part of 'Pradhan Mantri Urja Ganga' pipeline project i.e. Jagdishpur-Haldia & Bokaro-Dhamra Natural Gas Pipeline (JHBDPL) project and is being executed on a fast track basis. A total of 555 Km long pipeline with an approved cost of approximately Rs. 2700 crore in West Bengal will pass through eight districts like Puruliya, Bankura, Burdwan, Nadia, Hooghly, Howrah, East Medinapur and 24 North Paragana. Further project activities for execution of pipeline in the state of West Bengal upto Haldia and City Gas Distribution in Kolkata are also expected to commence shortly.
The prestigious 2655 Km long JHBDPL project was inaugurated by Hon'ble Prime Minister of India in July'2015. The project is progressing in full swing. The pipeline will pass through the states of Uttar Pradesh, Bihar, Jharkhand, West Bengal and Odisha.
The project is being executed in a phased manner. Phase I consists of pipeline network from Phulpur – Dobhi with spurlines to Varanasi, Gorakhpur, Patna and Barauni (755 Km) and is scheduled to be completed by Dec '18. Phase II of the project beyond Dobhi (Gaya) towards Durgapur Haldia & Bokaro – Ranchi and Angul – Dhamra (1900 Km) is scheduled to be completed progressively by Dec'20.
The project will usher Industrial development in Eastern part of India by supplying environmentally clean Natural Gas to Fertilizer & Power plant, Refineries, Steel plants and other Industries. Further, the arrival of the Pradhan Mantri Urja Ganga will provide direct and indirect employment to thousands of people.
The project will also provide clean energy to households and transportation in the cities en-route the pipeline. The City gas Network laying activity in Varanasi, Bhubaneswar, Ranchi and Cuttack has already commenced and activities in other cities namely Patna and Jamshedpur will start by next month. The pilot project in Bhubaneshwar for providing PNG & CNG has already been inaugurated in October 2017 & December 2017 respectively, by Hon'ble Minister of Petroleum & Natural Gas and Skill Development & Entrepreneurship.
GAZPROM MARKETING & TRADING SINGAPORE PTE LTD AND GAIL (INDIA) LIMITED HAVE CONFIRMED THE START OF SUPPLY UNDER THE LONG-TERM SALE AND PURCHASE AGREEMENT THE 20 YEAR LNG SUPPLY DEAL WILL COMMENCE IN 2018 AS ORIGINALLY AGREED IN 2012
New Delhi, 16th January 2018: GAIL and Gazprom have strengthened their partnership further by successfully re-negotiating the long-term LNG Sale and Purchase Agreement (SPA) originally signed in the year 2012. An amendment to this effect was signed today in New Delhi between Mr Gajendra Singh, Director (Marketing) GAIL (India) Limited and Mr. Vitaly Vasiliev, CEO Gazprom Marketing & Trading Limited.
A long-term LNG Sale & Purchase Agreement building up to 2.5 MMTPA of LNG on DES (Discharge-ex-Ship) basis was executed by GAIL with Gazprom Marketing & Trading Singapore (GMTS) in the year 2012, the supplies under which are scheduled to start in Q2 2018.
The two parties have agreed to an adjustment to the price and volume of LNG supply thus enabling GAIL to develop incremental gas markets to offtake these volumes thereby mitigating volume risk.
Vitaly Vasiliev, CEO of Gazprom Marketing & Trading, said: “I am excited to announce that we agreed to deliver on our original promise and begin LNG supplies in 2018. We look forward to strengthening a mutually beneficial partnership with Gail going forward.”
Speaking on the development, Mr. B C Tripathi, Chairman and Managing Director, GAIL (India) said that “This agreement is a key mile stone affirming partnership of GAIL and Gazprom in developing LNG markets under Indo-Russia trade relationship.” This deal is a step for GAIL to diversify LNG portfolio by spreading price reference indices across multiple geographies so as to provide consumers greater flexibility in service. This chapter of relationship between the two companies opens up exploration of further opportunities in portfolio optimization and LNG swap dealings for mutually beneficial outcomes.
The SPA signed in 2012 is a 20-year liquefied natural gas (LNG) sales and purchase agreement following the signing of an earlier Basic Framework Agreement (BFA) by the two companies on 18 May 2011.With start of the LNG supplies from USA and Gazprom in 2018, GAIL’s LNG portfolio would increase multi-fold bringing it in the league of some of the largest traders of LNG in the world.
GAIL (India) Limited
GAIL is India’s leading natural gas company with diversified interests across the natural gas value chain of trading, transmission, LPG production & transmission, LNG re-gasification, Petrochemicals, City Gas, E&P, etc. GAIL is expanding pipeline network by 4000 kms. at an investment of about Rs. 20,000 to operate over 15,000 kms by 2020. GAIL commands 75% market share in gas transmission and has a Gas trading share of over 50% in India. It also has a growing international presence through subsidiaries in the USA and Singapore.
Gazprom Marketing & Trading Singapore Pte Ltd (GM&T Singapore)
Gazprom Marketing & Trading Singapore (GM&TS) started operations in December 2009 as a platform for LNG trading and marketing, shipping and originating carbon reduction projects in the Asia Pacific markets. Since then the Singapore operation has grown to over 60 people as the business extends Gazprom’s reach beyond its core portfolio offering by launching trading desks in LPG and currency. GM&TS has secured its reputation in the market through actively trading across India, Japan, Australia, South Korea, Taiwan, China, Malaysia and Thailand.
Gazprom Marketing & Trading Limited (GM&T Ltd)
Gazprom Marketing & Trading Limited (GM&T) is a UK-registered wholly-owned subsidiary of PAO Gazprom (“Gazprom”), the world’s largest gas company by asset base, accounting for approximately 17% of the world’s total natural gas reserves and for about 72% of natural gas reserves in Russia. GM&T is headquartered in London and was established in 1999 to manage Gazprom's marketing and trading activities in the liberalised markets of Europe. GM&T is headquartered in London and is responsible for the optimisation of Gazprom’s energy commodity assets and downstream expansion through its marketing and trading network. With subsidiaries in USA, Singapore, France, Germany, the Netherlands and Switzerland, GM&T trades energy commodities including gas, power, oil and oil products, carbon, LNG and FX.
Natural gas pipeline damaged due to unauthorized digging, no casualties or damage to property reported
Vadodara, January 8, 2018: A natural gas pipeline of GAIL (India) Limited was damaged due to unauthorized digging work here today, leading to gas leakage. However, the leakage was quickly stopped and there were no casualties or damage to property due to the incident.
The leakage was reported near gate no. 10 of Gujarat Alkalies and Chemicals Limited this morning and initial reports suggest that it was caused by unauthorized HDD work being carried out by another agency. Quick response teams were deployed by GAIL immediately and the situation was brought under control. The area has been cordoned off and two fire tenders stationed at the site.
The damaged pipeline is being repaired. During the period of repair, supply of natural gas to affected customers is lined up through alternate source to maintain uninterrupted supply of natural gas. Efforts are on to complete the repair work at the earliest.