GAIL on Friday said it has signed a memorandum of understanding (MoU) with Shell India on liquefied natural gas (LNG) for road transport, regasification of imported LNG and renewables, among others.
The MoU is to explore opportunities in different facets of the energy value chain. For GAIL, this is a step towards achieving improved sustenance in business operations, the company said in a statement.
“In a bid towards diversification of the feedstock for its petrochemical plant, GAIL is looking to import ethane from ethane-surplus countries with matured export terminal infrastructure through water-borne transportation to India and transport it further through GAIL’s pipeline systems to demand centres,” it added.
The MoU envisages to explore prospects in import and handling of different hydrocarbons which are important chemical and petrochemical precursors, LNG for road transport, regasification of imported LNG, renewables, etc.
During the December quarter (FY23), GAIL acquired a 26 per cent stake in GAIL Bhuwan ship, LNG Japonica. Diversifying the company’s business with an entry into the speciality chemical segment, GAIL board has approved 50 KTA (kilo tonnes) Isopropanol unit (IPA) at Usar where the PDHPP plant is already under construction.
The company has raised ₹1,575 crore by issuing redeemable non-convertible debentures at a highly competitive rate and incurred capex of around ₹6,278 crore during the nine months mainly on pipelines, petrochemicals, operational capex etc, which is 79 per cent of annual target.
Recently, GAIL declared an interim dividend for FY23 of 40 per cent on the paid-up equity share capital, which is ₹4 per share. The total dividend amount is ₹2,630 crore. Of this, the government, with a stake of 51.52 per cent, will get about ₹1,355 crore, while other shareholders will receive about ₹1,275 crore.