Kolkata city gas distribution network expands with pipeline reach: Gail

kolkata gas distribution, gail, city gas, natural gas, pipeline expansion, cgd network

GAIL (India) Ltd chairman and managing director Sandeep Kumar Gupta on Friday said significant progress in the Kolkata city gas distribution network has been achieved with pipelines now reaching the eastern metropolitan, paving the way for accelerated natural gas adoption in the city and adjoining districts in near future.

The development comes after prolonged delays due to challenges in navigating fisheries-rich districts of Midnapore, critical for pipeline routing for the Jagdishpur-Haldia-Bokaro-Dhamra pipeline.

"The pipeline has reached Kolkata, so city gas distribution will get accelerated. Earlier we had to transport it," Gupta told PTI on the sidelines of the Institute of Internal Auditors India 32nd AGM.

Asked about a timeline, he said, "We stand by the minimum work programme under which all the city gas distribution entities have to work. The work programme is decided by the Petroleum and Natural Gas Regulatory Board. So, they will be working all in line with that work programme."  City natural gas distribution is executed by Bengal Gas Company Limited, a joint venture of GAIL (India) Limited and Greater Calcutta Gas Supply Corporation Limited (GCGSCL, a company of GoWB), to develop the City Gas Distribution (CGD) network in Kolkata (CGD network in Kolkata city and parts of adjoining districts of North 24 Parganas, South 24 Parganas, Howrah, Hooghly, and Nadia).

The GAIL chairman also expressed confidence that the Kolkata-Haldia pipeline, along with the stalled Dhamra-Haldia link, would see renewed momentum, with completion targeted by next year.

Speaking about capex plans, the GAIL chairman said, "This fiscal, we are expecting to do Rs 10,000 crore. But this trend will increase to about Rs 12,000 crore for the next 2-3 years from FY'26 onwards due to new projects, as we are expecting new pipelines to be authorised to us."  Gupta projected maintaining a robust growth trajectory for gas transmission, citing an 11 per cent year-on-year rise in demand driven by industrial shifts to cleaner fuels and expanding city gas distribution (CGD) networks.

"We expect to maintain this growth trend," Gupta said.

The GAIL chairman also said he does not foresee any immediate softening of gas prices amid the crude price decline trend. However, he predicted softening prices in the medium term, citing upcoming LNG projects in the US.