GAIL to debut in distributed LNG production business; stock slips ~2%

23 Jun 2022 , 09:32 AM

GAIL (India) Limited plans to enter into distributed Liquefied Natural Gas (LNG) production in a first-of-its-kind venture in the country, with the goal of meeting demand from off-grid locations and transportation sector.

GAIL has placed an order for two small-scale liquefaction skids capable of pilot-scale LNG production. Liquefaction will be accomplished using mobile liquefaction skids based on proprietary technology. These plants will aid in natural gas distribution by liquefying gas in new CGD areas, liquefying gas in isolated fields, and assisting in the establishment of LNG fuelling stations and bunkering. GAIL will be first-of-its-kind in the country to introduce portable and scalable liquefaction units.

The project is intended to give a boost to the Government of India’s targeted initiatives aimed at increasing the share of natural gas in the primary energy basket. GAIL is also in talks about manufacturing liquefaction skids in India.

At around 9.40 AM, GAIL (India) was trading at Rs131.55 down by Rs2.1 or 1.57% from its previous closing of Rs133.65 on the BSE. The scrip opened at Rs133.30 and has touched intraday high and low of Rs133.65 and Rs131.20 respectively.