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New Delhi – GAIL (India) Limited, a state-owned natural gas company, has announced a significant capital expenditure plan to expand one of its key pipeline networks.
The company’s Board of Directors, in a meeting held today, approved an investment of ₹5,363.88 Crore to double the capacity of its Jamnagar-Loni Petroleum Product (LPG) Pipeline (JLPL).
The project will increase the pipeline’s existing capacity from 3.25 million metric tonnes per annum (MMTPA) to 6.5 MMTPA.
According to the company’s filing, the existing pipeline is already operating at near-peak levels, with a current capacity utilisation of 3.22 MMTPA, indicating strong demand. The expansion will add another 3.25 MMTPA of capacity.
The company stated that the primary rationale for this major investment is to support its business growth.
The project is expected to be completed within a 36-month period from the date of authorisation by the Petroleum and Natural Gas Regulatory Board (PNGRB), which was granted on 23 July 2025.
The funding for this large-scale expansion will be sourced through a combination of debt and equity.
The decision was finalised by the Board of Directors in a meeting on 24 September 2025. This announcement was made in a formal disclosure to the National Stock Exchange of India and BSE Limited.
What This Means for GAIL
In simpler terms, GAIL is investing a substantial amount of money to double the amount of LPG it can transport through this important pipeline.
The fact that the current pipeline is almost always full shows that there is a high demand for GAIL’s services.
By building this additional capacity, GAIL is positioning itself to handle more business, which can directly lead to higher revenues and supports the company’s long-term growth plans.
This is a strong signal of the company’s confidence in future energy demand.
This official communication was signed by Mahesh Kumar Agarwal, the Company Secretary for GAIL.
The announcement was made as part of the company’s legal obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which requires publicly listed companies to inform stock exchanges of significant events.
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