WHY BUY GAIL?-ANALYSIS BY INDIAN-SHARE-TIPS.COM

1. Gas Transmission : GAlL owns and operates a networks of over 5,800 km of Natural Gas high pressure trunk pipeline with a capacity to carry 130 MMSCMD of natural gas across the country . It supplies nearly 82 million cubic meters of natural gas per day as fuel to power plants , gas based fertilizer plants and to over 500 other small medium and large industrial units ,GAIL share of gas transmission business is 87% and the Company holds 73% market share in gas marketing in India .

2. LPG Transmission : GAIL is the only company in India which owns and operates pipelines for LPG transmission . It has a 1,900 km LPG pipeline network 1,300 km of which connects the Western and Northern parts of India and 600km of networks is in the Southern part of the country . The LPG transmission system has a capacity to transport 3.89 MMTPA of LPG.

3. Petrochemicals : GAIL owns and operates a gas based integrated petrochemical plant at Pata , Uttar Pradesh with a capacity of producing 400,000 TPA of Ethylene and 310,000 Polymers i.e. HDPE and LLDPE . The capacity of HDPE plant is being enhanced by 100,000 TPA GAIL is currently in the process of setting up a 280,000 TPA Assam Petrochemical Complex at an investment of Rs 5,460 crore.

4. City Gas Projects : GAIL was the first company to introduce City Gas Projects in India . In addition to gas marketing through its Trunk and Regional Transmission systems, GAIL has also formed Joint Venture companies for supplies to household , commercial users and fot the transport sector in Delhi, Mumbai , Hyderabad , Tripura , Kanpur , Lucknow , Agra and Pune .

5. Exploration and Production : In a move towards integration along the energy chain and for sourcing supply , GAIL has entered into the area of Exploration & Production Currently , the company is involved in oil and gas exploration activities over an acreage of 1,96,337 sq .km. GAIL now holds a participating interest between 10 to 80 per cent in 30 oil and gas exploration blocks.

6. Overseas Presence : Apart from its equity participation in three retail gas companies in Egypt and in China Gas Holdings in China, participating interest in offshore blocks in Myanmar and one on land block in Oman, GAIL is pursuing business opportunities in region such as south/South-East Asia , West Asia Russia and Central Asian Republics and African continent in the areas of exploration and production , gas transmission , CNG and city gas distribution , LNG and petrochemicals . GAIL has also set up a wholly – owned subsidiary company viz . GAIL Global (Singapore) Ltd in Singapore.