GAIL India will invest ₹5,363.88 crore to double the capacity of its liquefied petroleum gas (LPG) pipeline to 6.5 million tonnes a year from its existing capacity of 3.25 million tonnes per year, the state-run company said in a stock exchange filing filing on Tuesday.
The pipeline, which runs from Jamnagar on the west coast to Loni in Uttar Pradesh, is expected to complete its expansion by July 2028. Funding will be a mix of debt and equity, GAIL said.
In a separate filing, the company announced a delay in the completion of its Mumbai-Nagpur-Jharsuguda gas pipeline project. The revised completion date is now December 31, pushed back from the original September timeline.
Pipeline Progress and Project Delays
Part-A of the Mumbai-Nagpur pipeline is mechanically complete, pending final clearance from the Petroleum and Explosives Safety Organisation (PESO). The Nagpur-Jharsuguda segment is also mechanically complete and ready for gas-in.
The Maharashtra pipeline work of around 9 km is balance. The work is under progress and expected to be ready for “gas-in” by December, 2025, Gail said.
Maharashtra (62 km) pipeline work of around 1.8 km is balance and is expected to be completed by October, 2025.
Capex Plans and Future Investments
The company has charted out a capex plan of Rs 12,000 crore for the financial year 2026-27. Of this, the company has laid out Rs 4,000 crore for pipeline projects, Rs 200 crore for city gas distribution projects, Rs 2,500 crore for petrochemical projects, Rs 500 crore for E&P, and an operational capex of Rs 1,400 crore. Another Rs 850 crore will be spent as equity contribution and Rs 2,000 crore has been allocated to achieve its net zero ambitions.
The company estimates its capex target for the current fiscal 2025-26 at Rs 10,700 crore against Rs 10,512 crore incurred in FY25.