NEW DELHI: Indian GAIL wants to boost its liquefied natural gas (LNG) portfolio to 20 million tonnes a year in the next seven years through acquisitions and supply deals so that it can beef up trading of the super-cooled gas, Chairman B.C. Tripathi said.
Tripathi's comments to Reuters in an interview late last week mark the first time GAIL (India) Ltd has detailed its long-term LNG goals and show how the state-run pipeline monopoly is diversifying its business mix to gain from a surge in demand for the cleaner fuel at home and overseas.
The first Indian firm planning to carve a niche in LNG trading, GAIL has already tied up supplies for nearly 15 million tonnes a year. But supply agreements on some of that capacity is set to expire in the next few years, meaning it will have to strike fresh deals to replace that.
"Overall (in its) portfolio, GAIL will have 20 million tonnes by 2020," said Tripathi, who has steered GAIL's transformation from its focus on domestic pipeline operations since he took the helm in August 2009.
Tripathi did not say how much GAIL will be spending to achieve its LNG ambitions but added that its trading team in Singapore will treble to six from the current two as of June.
GAIL, in which the Indian government holds a 57.4 percent stake, runs about 10,000 kilometres of gas pipelines in the country. It also operates one of India's three LNG terminals.
The company currently sells 6.5 million tonnes per annum (mtpa) of LNG locally, sourced from Qatar's Rasgas under a long-term contract and through small deals with GDF Suez and Spain's Gas Natural Fenosa (GNF) which end in 2015.
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