Chairman & Managing Director, GAIL (India) Limited
Goa India Energy Week 2024 में GAIL के Director (Projects), Deepak Gupta से खास बातचीत
गैस आधारित Economy पर फोकस, मार्च तक 4000 km की पाइपलाइन कमीशन हो जाएगी ...
About Deepak Gupta
Deepak Gupta, Chairman and Managing Director of GAIL India, has been speaking about the company's role in expanding India's natural gas infrastructure. In February 2024, he stated that the government aims to increase natural gas's share in the country's energy mix from around 6.3% to 15% by 2030. He said GAIL handles more than 50% of the country's gas trading and over 70% of its gas transmission, and that the company has a capital expenditure plan of about 40,000 crore rupees over the next four to five years for pipeline and other projects. Gupta also mentioned that GAIL has begun blending 5% hydrogen into the gas supply in the Indore area through a joint venture and plans to establish about 29 compressed biogas (CBG) plants in the next one to two years. In a May 2023 address, Gupta noted that India's national gas grid is advancing toward completion, with about 22,000 kilometers of pipeline existing and a target of 34,000 kilometers in the coming years. He said the country currently uses about 180 million metric standard cubic meters per day (MMSCMD) of gas and is targeting 500 MMSCMD by 2030. Gupta also highlighted challenges such as aging pipeline infrastructure and corrosion, and emphasized the importance of regulatory compliance, technology adoption, and minimal manual intervention in operations and maintenance.
Transcript (12 segments)
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Interviewer0:01
The government's focus is on a gas-based economy because it could be the most important point for both energy needs and pollution. We have with us for a special conversation from GAIL. Deepak Sir, my first question is: looking at the entire gas distribution network, what is GAIL's focus in this, and how much will you spend on its expansion?
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Deepak Gupta0:21
We will spend, as you correctly said, the government's focus is entirely on a gas-based economy, and in our present energy mix, the share of gas is around 6.3 percent, which the government wants to increase to 15 percent by 2030. GAIL is playing a very important role in this. There are a few aspects: GAIL trades more than 50 percent of the country's gas, it is number one, and it transmits more than 70 percent of the gas. Including our group companies, we have about 67 CGDs across the country. Looking at these figures, it is clear that GAIL is making a huge contribution in delivering gas to every home. Not only homes, but also industries, large fertilizer plants, the power sector, refineries, and the steel sector – wherever gas is consumed. Our projects have already been commissioned, about 35,400 kilometers of pipeline work is ongoing. We expect that all these projects will be completed by the end of this year or by March next year. GAIL's investment in pipeline projects alone is about 8,000 to 9,000 crore rupees. Considering all this, GAIL plays a very important role in promoting a gas-based economy. Regarding blending, the government has said that there will be an investment of 67 billion dollars in 5 years.
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Interviewer2:30
Looking at this entire investment and infrastructure plan, what kind of opportunity is there for GAIL, and how much share do you intend to take in it?
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Deepak Gupta2:37
We want to take a share in blending. The Indian government has a very big initiative in which self-reliance is a major agenda. Under that, we want to blend in our gas and reduce our import dependence. Currently, about 50% of gas is imported. The only way to reduce this in the coming time is to blend in natural gas. Blending can be done either with hydrogen or with CBG. That is why work is going on with great emphasis. Through our joint venture, we have already started 5% hydrogen blending in the Indore area under that CGD. It is a pilot project. In the coming years, it is expected that many more such projects will be established and the blending pattern and ratio will increase. Apart from this, there has been a sudden revolution in CBG projects. Recently, GAIL has signed an MoU with a company called Tooled, through which we are agreeing with them for 10 CBG plants. GAIL will establish about 29 CBG plants in the next year or two. The CBG produced from these will also be used in blending, and can also be used directly as a dispensing fuel. So blending will be a big focus for GAIL in the coming years. This will increase our self-reliance, and our clean fuel will become greener, and whatever little carbon emissions there are will be further reduced. That is our aim in the coming time.
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Interviewer4:29
Our goal is, Sir, if we talk about the entire project, how will the entire expenditure happen in both, and where will you bring the expenditure from?
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Deepak Gupta4:39
We will bring it. As far as expenditure is concerned, GAIL is spending from its internal accruals, and wherever we need to borrow, we are doing that too. So we have very good capex plans for the coming time. Not just pipeline projects, there are many other projects where our capex amount plan is about 40,000 crore rupees over the next four to five years. So this capex investment is expected.
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Interviewer5:17
Sir, one last question. The government focuses the most on transport, that if we shift it to gas, then a big fossil fuel expenditure can be reduced. The government has designed many LNG corridors. It is being said that GAIL will also work on many projects. How do you view those projects, and if this network expands further and such corridors increase, what a great opportunity it will be for GAIL to have such corridors grow.
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Deepak Gupta5:42
It will benefit the country greatly, and it will directly impact our gas-based economy. Not just the gas-based economy, but also the pollution that is spreading in the environment. So this will be a very important step for GAIL and for other companies as well. Regarding LNG corridors, we will also set up identification. Recently, we have commissioned two small-scale LNG plants at our facility in Vijaypur. With their help, we will get LNG and use it in places where gas pipelines cannot reach, or in the LNG corridors being built, we will use that LNG as fuel for long-haul trucks, trailers, and also to supply various CGD entities that are not connected with the pipeline as of now.
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Interviewer6:48
One last question, Sir. From the consumer's perspective, the network is expanding, consumption will increase, you are expanding, adding many things, blending is increasing. Will the consumer benefit from this? Could gas become even cheaper in the coming days? Any hope?
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Deepak Gupta7:02
The consumer will definitely benefit. As the country's own gas production capacity increases, this gas will definitely be cheaper than imported gas. When it is blended with national gas, the consumer will benefit. Not only that, the consumer will also get the benefit of getting greener fuel. Along with that, gas prices are quite volatile and depend on many factors like the political situation and other factors. But if we can increase gas production capacity within our country, then we hope that the consumer will get direct benefit and prices will also be lower.
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Interviewer7:56
Regarding smart metering, companies are rapidly advancing. What will change with this? Looking at the overall scenario from the company's perspective and from the consumer's perspective.
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Deepak Gupta8:11
Smart metering is a good initiative, in our opinion a very good initiative. Companies want that consumers should not be under any kind of pressure, but rather after installing these smart meters like prepaid metering, the usage should happen and payment should be according to the gas consumed. So all the CGD companies benefit greatly because smart meters enable prepaid metering. After prepaid metering, you will get a bill for exactly the amount of gas you consume. So it is a good initiative. Many companies are advancing in this by forming joint ventures or tie-ups with companies that manufacture smart meters. The difficulty is why this need arose. And if we talk about your expansion in this area, especially in this sector, how are you moving forward? No, smart metering is a technology, a new initiative. Every company wants to advance in technology. That is why they are implementing it because a new latest technology has come to the market. And just like the concept of prepaid metering exists in other things, in the same way, the concept of prepaid metering will come in gas as well.