Gail intro

1. 1. OVERVIEW OF GAIL:
Gas (India) Limited (GAIL) (formerly known as Gas Authority of India Limited) is the
largest state-owned natural gas processing and distribution company in India. It is headquartered
in New Delhi. It has the following business segments: natural gas, liquid hydrocarbon, liquefied
petroleum gas transmission, petrochemical, city gas distribution, exploration and production,
GAILTEL and electricity generation. GAIL was conferred with the Maharatna status on 1 Feb
2013, by the Government of India. Only six other Public Sector Enterprises (PSEs) enjoy this
coveted status amongst all central CPSEs. GAIL was listed in the 131st position among India's
most trusted brands according to the Brand Trust Report 2014, a study conducted by the Trust
Research Advisory.
The Company is engaged in activities, including transportation through pipeline; manufacture of
basic chemicals, fertilizer and nitrogen compounds, plastics and synthetic rubber in primary
forms; extraction of crude petroleum; extraction of natural gas, and electric power generation,
transmission and distribution. The Company's products and services include natural gas
marketing and transmission; petrochemicals (polyethylene and polypropylene), and liquid
hydrocarbons production (LPG, propane, pentane and naphtha).
GAIL’s KG Basin pipeline system is a cross-country pipeline engaged in transportation of
Natural Gas. It is spread over n East Godavari, West Godavari and Krishna Districts of Andhra
Pradesh. Major length of the pipeline is coated with the three layer polyethylene coating except
some sections which are coal tar coated and fusion bonded epoxy coated. Pipeline is laid
underground with a minimum cover of one meter from natural ground profile. Though coating
takes care of protection of pipeline against corrosion to a large extent yet Cathodic Protection
System has been provided for the long life of the pipeline.
This pipeline network receives gas from ONGCL, CEIL, RGTIL and other suppliers and various
consumers as listed in the table 1 through terminals at their ends. The major consumers of
Natural Gas are Fertilizer and Power Plants. Small consumers are large in numbers though
consume small part of the total sale. Tele-Supervisory system has been provided for central
monitoring and control of pipeline system in KG-Basin. There is a dedicated telecommunication
network to provide a highly reliable voice and data communication. KG Basin Pipeline system
has incorporated most modern built-in safety and security systems.

2. 1.1 HISTORY:
GAIL (India) Limited was incorporated in August 1984 as a Central Public Sector Undertaking
(PSU) under the Ministry of Petroleum & Natural Gas (MoP&NG). The company was formerly
known as Gas Authority of India Limited. It is India's principal gas transmission and marketing
company. The company was initially given the responsibility of construction, operation and
maintenance of the Hazira – Vijaypur – Jagdishpur (HVJ) pipeline project. It was one of the
largest cross-country natural gas pipeline projects in the world. This 1750-kilometre-long
pipeline was built at a cost of ₹17 billion (US$270 million) and it laid the foundation for
development of market for natural gas in India. GAIL commissioned the 1,750 kilometres
(1,090 mi) Hazira-Vijaypur-Jagdishpur (HVJ) pipeline in 1991. Between 1991 and 1993,
three liquefied petroleum gas (LPG) plants were constructed and some regional pipelines
acquired, enabling GAIL to begin its gas transportation in various parts of India.
GAIL began its city gas distribution in New Delhi in 1997 by setting up nine compressed natural
gas (CNG) stations. In order to secure gas for its mainstream business, the Exploration and
Production department was created. Today GAIL is a partner in the Daewoo-OVL led
consortium in two offshore blocks in Myanmar which have made a gas discovery. The bulk of its
blocks are located in India in the prolific basins of Cambay, Assam-Arakan, Mahanadi, Krishna
Godavary deep water and onland, Cauvery onland and deep water and western offshore. It is
actively scouting for foreign blocks both exploratory or discovery.
GAIL today has reached new milestones with its strategic diversification into petrochemicals,
telecom and liquid hydrocarbons besides gas infrastructure. The company has also extended its
presence in power, liquefied natural gas re-gasification, city gas distribution and exploration &
production through participation in equity and joint ventures. Incorporating the new-found
energy into its corporate identity, Gas Authority of India was renamed GAIL (India) Limited on
22 November 2002.
GAIL (India) Limited has shown organic growth in gas transmission through the years by
building large network of trunk pipelines covering length of around 10,700 kilometres
(6,600 mi). Leveraging on the core competencies, GAIL played a key role as gas market

3. developer in India for decades catering to major industrial sectors like power, fertilizers, and city
gas distribution. GAIL transmits more than 160 mmscmd of gas through its dedicated pipelines
and have more than 70% market share in both gas transmission and marketing.
1.2 INFRASTRUCTURE:
GAIL owns the country's largest pipeline network, the cross-country 2300 km Hazira-Vijaypur-
Jagdishpur pipeline with a capacity to handle 33.4 MMSCMD gas. Today the company owns and
operates more than 11000 km long cross country natural Gas Pipeline in India having presence in
22 states in the country. It also owns and operates more than 2000 km long LPG pipelines in the
country and has the pride to operate one of the world's longest exclusive LPG pipeline in the
country from Jamnagar in Gujarat to Loni in Uttar Pradesh. The company also owns and operates
seven mega LPG recovery plants in the country today and has to its credit almost 20% of
domestic LPG produced and supplied for the domestic usage through its sisters PSUs like IOCL,
BPCL and HPCL. GAIL is one of the major petrochemical conglomerates in the country today
with India's largest gas based petrochemicals in operation since 1999. In petrochemicals, it has
its own gas based integrated petrochemical plant and also the ownership of 70% in dual fuel
petrochemicals in Assam, Brahmaputra Cracker and Polymer Limited and one of the major
equity partners in OPal.
The company supplies gas to power plants for generation of over 4,000 MW of power to the
Fertilizer plants for production of 10 million tonnes of urea and to several other industries. The
regional pipelines are in Mumbai, Gujarat, Rajasthan, Andhra Pradesh, Tamil Nadu,
Pondicherry, Assam, Tripura, Madhya Pradesh, Haryana, Uttar Pradesh and Delhi. The
Company has established six gas processing (LPG) plants, four along the HVJ pipeline two at
Vijaypur, MP, one at Vaghodia, Gujarat and Auraiya, UP and one each in Lakwa, Assam and
Usar, Maharashtra. These plants have the capacity to produce nearly 1 million tpa of LPG. GAIL
has also set up several compressor stations for boosting the gas pressure to desired levels for its
customers and internal users.
GAIL also possesses a vast telecommunication network that contributes significantly to the high
level of system reliability of operations, on-line real-time communication and monitoring higher
productivity. GAIL became the first Infrastructure Provider Category II Licensee and signed the

4. country's first Service Level Agreement for leasing bandwidth in the Delhi-Vijaypur sector in
2001, through its telecom business GAILTEL.
In 2001, GAIL commissioned the world's longest and India's first cross country LPG
transmission pipeline running from Jamnagar in Gujarat to Loni in Uttar Pradesh. The total
length of this LPG pipeline is 1415 km.
GAIL has started working on the Jagdishpur-Haldia/Bokaro-Dhamra Pipeline. This was earlier
planned to construct between Jagdishpur in Uttar Pradesh to Haldia in Bengal for a total length
of 2050 km. But now it has been reconfigured. The pipeline will connect Prime Minister
Narendra Modi's political constituency Varanasi to the gas grid, to link the Dhamra terminal. The
over 2,500-kilometer line will be constructed in three phases and will also now connect Adani
Group's Dhamra LNG import terminal in Odisha. In the first phase, a trunk pipeline from
Phulpur (Allahabad) will be laid to Dobhi (Gaya) in Bihar with spur lines to Barauni and Patna.
The 755-km Phase-1 project will cost Rs.3,200 crore and will be completed by December 2018.
GAIL already as a line up to Phulpur. It is raising capacity of this pipeline by laying a 672-km
parallel line from Vijaypur in Madhya Pradesh to Phulpur via Auriaya in Uttar Pradesh at the
cost of Rs.4,300 crore. In the Phase-II, a 1200-km line would be laid from Dobhi to
Bokaro/Ranchi in Jharkhand and Angul and Dharma in Odisha at the cost of Rs.5,565 crore.
Phase-III will involve laying 583-km line to Haldia at the cost of Rs.3,425 crore.

5. 1.3 LIST OF CONSUMERS:
S.No NAME OF THE CONSUMER
1. Nagarjuna Fertilizers & Chemicals Ltd., Kakinada, East Godavari District
2. Spectrum Power Generation Limited, Kakinada, East Godavari District
3. Reliance Energy Limited, Samalkot, East Godavari District
4. GVK Industries, Jegurupadu, East Godavari District
5. APGPCL, vijjeswaram, East Godavari District
6. Lanco-Kondapalli Power Ltd., Kondapalli, Krishna District
7. Vemagiri Power Generation Ltd., Vemagiri, East Godavari District
8. Sri Vathsa Power Plant, East Godavari District
9. Delta Paper Mills Ltd., Vendra, West Godavari District
10. Rolex Paper Mills Ltd., West Godavari District
11. Andhra Sugars Ltd., Tanuku, West Godavari District
12. Sri Akkamamba Textiles, Tanuku, West Godavari District
13. Vijaya Porcelain Products Ltd., West Godavari District
14. Triveni Glass Ltd., West Godavari District
15. Regency Ceramics Ltd., Yanam
16. Regency Ceramics Ltd., East Godavari District
17. Coromandal, Kakinada, East Godavari District
18. Bhagyanagar Gas Ltd.,
19. Andhra Fuels Ltd., Krishna District
20. Varalakshmi Ice & Cold Storage, Krishna District
21. Vennar Ceramics Ltd., Krishna District
22. Shyamala Ice & Cold Storage., Krishna District
23. Vijaya Durga Industries Ltd., Krishna District
24. Nagarjuna Cerachem Ltd., Krishna District
25. KK Meena & Jain., Krishna District
26. Sentini Ceramics, Krishna District
27. Sri Rama Ceramics Ltd., Krishna District
28. Global steels Ltd., Krishna District
29. Jay Venkata Rama, East Godavari District
30. Sri Rama Krishna Ice Factory, East Godavari District
31. Sri Ganga Ice Factory, East Godavari District
32. Steel Exchange, East Godavari District
33. Hi Tech Gases, East Godavari District

6. 34. GMR Barge, Kakinada, East Godavari District
35. Silk Road Sugars, Kakinada, East Godavari District
36. Silica Ceramica, West Godavari District
37. RVK Energy, East Godavari District
Table 1- List of consumers
1.4 Health, Safety and Environment Policy:
GAIL is committed to promote globally comparable levels of Health, Safety, Environment and
Loss control in the area of its business of natural gas transmission with clear emphasis on
improving the environment for sustainable development. The safety and occupational health of
its employees and external stakeholders are of paramount importance and all these attributes are
embedded within the core organizational values of the organization. GAIL provides appropriate
levels of training to employees to ensure that they are able to fulfil HSE responsibilities.
With regard to HSE objectives, GAIL accords highest priority to
 Establish and implement a HSE management system comparable to best in
industry.
 Operate and maintain its Facilities as per the best practices available to ensure
safety of all stakeholders, plant and surroundings.
 Promote eco-friendly activities.
 Comply with all statutory rules and regulations on safety, occupational health,
environmental responsibility and loss control and go beyond in setting internal
targets.
 Delegate power to all level employees to implement company’s HSE policy.
 Set tangible and measurable targets for monitoring the performance on HSE.
 Provide structured training to all employees for HSE best practices.
 Continuously review the policy’s relevance with respect to business
development and for continual improvement of HSE management system.