GAIL Boosts Natural Gas Network Amid Project Delays and Increased Costs

GAIL (India) Ltd is set to invest Rs 844 crore to expand the Dahej-Uran-Dabhol-Panvel natural gas pipeline to meet growing energy demands. However, the pipeline capacity expansion and other ongoing projects are facing delays and increased costs due to regulatory permissions and land acquisitions.

State-owned GAIL (India) Ltd announced a significant investment of Rs 844 crore to enhance the capacity of its Dahej-Uran-Dabhol-Panvel (DUPL-DPPL) natural gas pipeline network. The targeted gas throughput is set to rise from 19.9 million to 22.5 million standard cubic metres per day over the next three years.

Despite the expansion plan, GAIL faces delays in completion schedules across multiple pipeline projects. The completion date for the Mumbai-Nagpur-Jharsuguda pipeline, initially set for June 2025, has been postponed to September 2025 due to approvals related to forest permissions and other regulatory clearances.

The Srikakulam-Angul pipeline project is similarly affected, having its deadline shifted to December 2025. These delays, compounded by increased project costs, underscore the challenges faced by GAIL amid regulatory and logistical hurdles in India's energy infrastructure sector.

(With inputs from agencies.)