State-owned gas transporter Gail India on Wednesday reported an 11% jump in net profit to R985 crore in the first quarter ending June 30 mainly on account of trading activities and an increase in transmission of gas and liquefied petroleum gas (LPG), Gail India CMD BC Tripathi said. Turnover rose 25% in the quarter to R8,867 crore compared with the same period a year ago.
?Gail?s contribution to LPG subsidy, which has affected the company?s performance, has gone up 53% to R682 crore from R445 crore the same period a year ago,? Tripathi said.
Tripathi said Gail is in the process of setting up a natural gas trading unit in Singapore to capitalise on the growing Asian natural gas market. The eastern part of India is expected to emerge as a major imported liquefied natural gas (LNG) market, as per Gail?s assessment.
?We will be utilizing this opportunity. We are now looking at various options with respect to whether it (the proposed gas trading unit) should be an LNG sourcing hub for India or a global gas trading centre,? Tripathi told reporters.
Gail?s gas trading rose 32% to R7,205 crore in the quarter under review. The company has contracted four cargos of LNG in the first quarter in order to cater to the rising domestic demand, where gas will be in short supply due to the expected maintenance shut down of Reliance Industries-operated D6 block in the Krishna Godavari basin.
?New demand is coming up from sectors like city gas distribution, textiles and ceramics,? Tripathi said. Gail?s various subsidiaries are now in the process of laying city gas distribution pipelines in cities like Pune and Hyderabad, which, once commissioned, will also add to the company?s domestic gas sales.