GAIL Targets Transmission Volume of 132 Million Cubic Metres Per Day In FY26

GAIL (India) Ltd. has set a transmission volume target of 132 million cubic metres per day in FY26, according to Sanjay Kumar, director of marketing.

"There is some connectivity delay to some of our customers in the eastern side of the country," he said during a conversation with NDTV Profit on Thursday. "We also had lower power demand during the last few months, lower than what we had estimated."

"Some of the fertiliser plants have shut down and some of them were not, not going to operate. Our target for transmission volume would be 132 million cubic metres per day for this financial year and about 135–137 (mcmpd) for the next financial year," Kumar said.

Kumar expressed confidence in meeting these targets. He was optimistic about upcoming weather changes boosting power demand. The public sector natural gas company is also in the process of activating some of its new pipeline segments.

"As per our experience, we believe nature has a method of balancing. So, if the power demand was less in the last one and a half months, we believe it will come.

"The heat would come and the power demand should pick up. Few pipeline segments, we have already started charging gas," he said.

The top executive, commenting on the impact of the Israel-Iran war on LNG and crude oil prices, said that the fears of a blockage of the Strait of Hormuz pushed the prices of these commodities up, but now the "conflict is behind us".

“From $68, $67, the crude oil had gone up to around $80 and around $79 or $80. And the LNG prices, the spot LNG prices, the JKM marker that we track normally, moved up from $12 to more than $14.

"Now, all this was due to the concern related to a blockage of the Strait of Hormuz, through which 20% of LNG of the world moves, as well as 20% of crude oil and oil products," he said.

With the conflict now resolved, prices have begun to stabilise. Brent crude has fallen below $70, approaching $66, while West India LNG markers have cooled to around $12.50 to $17.

Kumar described this as a positive development for India's gas sector, as softer prices could stimulate demand and help bridge the supply-demand gap.

Looking ahead, the top executive said the market was entering a new phase. "LNG capacity of about 20% would be added in the next one or two years, all across the world. The demand does not come up immediately. For the next four or five years, we may be looking at softer LNG prices. The new normal that I foresee will be less than $10,” he said. 

"The new normal for Brent may be, we may be looking at $65, $60, up to $70," he added.