GSPL Transmission Ltd (GTL) plans to invest around ₹3,500 crore over the next two to three years to expand Gujarat’s natural gas pipeline network, increase the capacity of its existing high-pressure grid and extend connectivity to new industrial and city gas distribution markets.
The proposed investment covers more than 10 pipeline and connectivity projects with a combined length of approximately 700 km. GTL management told The Hindu BusinessLine that around 60-65 per cent of the capital expenditure would be directed towards capacity expansion, while the balance would fund network extensions into newer geographical areas within Gujarat.
The programme is expected to raise the capacity of GTL’s high-pressure grid to around 44 million metric standard cubic metres per day (MMSCMD), from the current 36-37 MMSCMD determined by the Petroleum and Natural Gas Regulatory Board. The planned increase represents approximately 20 per cent growth in rated transmission capacity.
Major projects include the 284-km Anjar-Palanpur pipeline, the 98-km Jamnagar-Dwarka pipeline, the 71-km Vapi-Tarapur pipeline and the 36-km Dahej-Bhadbhut pipeline. Although Anjar-Palanpur and Dahej-Bhadbhut are already connected to the existing grid, the additional infrastructure is intended to support higher gas transportation volumes and strengthen network links between existing entry and exit points.
The wider project portfolio includes spur lines and customer connectivity works covering Vantewad-Rajpipla, Botad-Jasdan, Mundra-Mandvi, Amreli-Kunkavav, Bhayla and Borosil. Once the planned additions are completed, GTL’s existing pipeline network of around 2,900 km is expected to expand to more than 3,600 km.
The Jamnagar-Dwarka pipeline is expected to connect with Sun Petrochemical’s exploration fields in the region, which could become an additional entry point for gas once the fields are developed. The pipeline is also intended to support city gas distribution networks being developed in Dwarka. GTL said the new links would help bring additional industrial and domestic consumers onto the natural gas grid in areas including Jamnagar, Dwarka, Rajpipla, Jasdan, Mandvi and Bhayla.
The company said the expansion would be funded mainly through internal accruals, supported by cash balances and operating cash flows. GTL management said the company had cash and bank balances of around ₹2,000 crore and could use debt if there was a funding shortfall. The projects had faced some delay because of regulatory approval-related issues, but implementation began during the previous financial year. Engineering and physical construction are now underway for projects where EPC contracts have been awarded.
GTL’s wider transmission footprint also includes its subsidiaries GSPL India Gasnet Ltd and GSPL India Transco Ltd, in which it holds a 52 per cent stake. GIGL operates approximately 1,439 km of cross-country pipeline, with another 120 km under construction, across Gujarat, Rajasthan, Haryana and Punjab. GITL operates approximately 365 km connecting Kothapalli/Tadepalligudem in Andhra Pradesh with Ramagundam in Telangana.
The subsidiaries reported higher volumes during Q2FY27. GIGL’s transportation volumes rose 27 per cent year-on-year to 5.49 MMSCMD, while transportation revenue increased 13 per cent to ₹81.49 crore. GITL recorded a 137 per cent increase in volumes to 1.68 MMSCMD, with transportation revenue rising 18 per cent to ₹26.29 crore.
GTL reported standalone revenue of ₹289.6 crore in the September quarter, up 8.4 per cent year-on-year, while net profit increased 2.2 per cent to ₹120.4 crore. Total pipeline transportation volumes rose to 45.5 MMSCMD in Q2 FY27 from 40.4 MMSCMD in the corresponding quarter last year. The company’s next milestones are the execution of the awarded EPC packages and completion of the planned network expansion projects.
