GAIL to Double Jamnagar-Loni LPG Pipeline Capacity with Rs 53.5 Billion Investment

1 min read     Updated on 26 Sept 2025, 05:43 AM
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Reviewed by
Naman SharmaScanX News Team
Overview

GAIL (India) Limited plans to expand its Jamnagar-Loni LPG pipeline capacity from 3.25 MMTPA to 6.5 MMTPA, investing Rs 53.50 billion. The company is also nearing completion of the 1,707 km Mumbai-Nagpur-Jharsuguda pipeline (MNJPL) project, expected to be fully commissioned by December 31, 2025. The MNJPL project, part of the National Gas Grid, spans four states and aims to provide clean fuel for City Gas Distribution and industrial sectors.

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*this image is generated using AI for illustrative purposes only.

GAIL (India) Limited , India's leading natural gas company, has announced a significant expansion plan for its Jamnagar-Loni LPG pipeline. The company is set to double the pipeline's capacity from 3.25 million metric tonnes per annum (MMTPA) to 6.5 MMTPA, marking a substantial increase in its LPG transportation capabilities.

Investment and Capacity Expansion

The ambitious project comes with a hefty price tag of Rs 53.50 billion, demonstrating GAIL's commitment to enhancing India's LPG infrastructure. This investment will effectively double the current capacity of the Jamnagar-Loni pipeline, which plays a crucial role in transporting liquefied petroleum gas (LPG) across the country.

Strategic Importance

The expansion of the Jamnagar-Loni LPG pipeline is expected to have far-reaching implications for India's energy sector. By increasing the pipeline's capacity, GAIL aims to improve the efficiency and reliability of LPG transportation, potentially leading to better supply chain management and increased availability of LPG for both domestic and industrial consumers.

Ongoing Projects and Future Outlook

In addition to the Jamnagar-Loni pipeline expansion, GAIL is also making progress on other significant projects. According to recent company disclosures, the Mumbai-Nagpur-Jharsuguda pipeline (MNJPL) project is nearing completion. This 1,707 km natural gas pipeline, part of the National Gas Grid, is expected to be fully commissioned by December 31, 2025.

The MNJPL project, which spans four states - Maharashtra, Madhya Pradesh, Chhattisgarh, and Odisha - is categorized as a high-impact project under the PM GatiShakti National Master Plan initiative. It aims to ensure the availability of clean fuel and cater to the demands of the City Gas Distribution (CGD) and industrial sectors.

GAIL's board of directors approved the decision to complete the MNJPL project by the end of 2025 in a meeting held on September 24, 2025. With 1,440 km of the pipeline already ready for gas-in and only 11 km remaining to be constructed in Maharashtra, the project is in its final stages.

These developments underscore GAIL's pivotal role in expanding India's gas infrastructure and its commitment to providing efficient and clean energy solutions across the country. As these projects come to fruition, they are likely to contribute significantly to India's energy security and the transition towards cleaner fuel options.

Historical Stock Returns for GAIL

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GAIL Delays MNJPL Project to December 2025, Approves ₹5,364 Crore Jamnagar LPG Pipeline Expansion

1 min read     Updated on 24 Sept 2025, 03:04 PM
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Reviewed by
Shriram ShekharScanX News Team
Overview

GAIL's Board of Directors has approved a ₹5,363.88 crore expansion project for the Jamnagar-Loni Petroleum Product Pipeline (JLPL). The project will increase the pipeline's capacity from 3.25 MMTPA to 6.5 MMTPA. The expansion is set to be completed within 36 months from July 23, 2025. GAIL has also extended the completion date for the Mumbai-Nagpur-Jharsuguda Pipeline (MNJPL) project to December 31, 2025. These infrastructure developments aim to meet India's growing energy demands and strengthen the country's gas pipeline network.

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*this image is generated using AI for illustrative purposes only.

GAIL (India) Limited , the country's largest gas transmission and distribution company, has announced a significant expansion project for its Jamnagar-Loni Petroleum Product (LPG) Pipeline (JLPL). The company's Board of Directors has approved a capacity expansion plan that will double the pipeline's capacity from 3.25 MMTPA (Million Metric Tonnes Per Annum) to 6.5 MMTPA.

Project Details

The expansion project comes with a price tag of ₹5,363.88 crore and will be financed through a combination of debt and equity. This strategic move is aimed at supporting GAIL's business growth and meeting the increasing demand for LPG transportation.

Current Capacity and Utilization

According to the disclosure made by GAIL under Regulation 30 of SEBI (LODR) Regulations, 2015, the current capacity utilization of the Jamnagar-Loni LPG Pipeline stands at 3.22 MMTPA, nearly maxing out its existing capacity of 3.25 MMTPA. This high utilization rate underscores the need for expansion to accommodate future growth.

Project Timeline

The expansion project is set to be completed within 36 months from July 23, 2025, following the authorization from the Petroleum and Natural Gas Regulatory Board (PNGRB). This timeline suggests that the expanded pipeline capacity should be operational by mid-2028, barring any unforeseen delays.

Strategic Importance

The Jamnagar-Loni LPG Pipeline plays a crucial role in the transportation of liquefied petroleum gas across several states in India. The doubling of its capacity is expected to significantly enhance GAIL's ability to meet the growing energy demands of the country, particularly in the LPG sector.

Additional Infrastructure Updates

GAIL has also revised the completion schedule for another significant project - the Mumbai-Nagpur-Jharsuguda Pipeline (MNJPL). The 1,702 km MNJPL project, which includes three sections, has seen its completion date extended from September 30, 2025, to December 31, 2025.

The MNJPL project update reveals:

  • Most of the construction is mechanically complete, awaiting regulatory approvals from PESO (Petroleum and Explosives Safety Organisation).
  • The Mumbai–Nagpur section is finished and ready.
  • Small portions totaling around 11 km remain incomplete across different stretches.

These infrastructure developments underscore GAIL's commitment to expanding and strengthening India's gas pipeline network, which is crucial for the country's energy security and economic growth.

As GAIL continues to invest in its pipeline infrastructure, these projects are expected to play a vital role in meeting India's growing energy needs and supporting the transition towards cleaner fuel options.

In the stock market, GAIL shares were trading 1.60% lower at ₹175.80 following these announcements.

Historical Stock Returns for GAIL

1 Day5 Days1 Month6 Months1 Year5 Years
-0.88%-0.90%-2.20%-5.02%-20.01%+204.63%
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