Empowering cities, enabling sustainability: the Gail Gas success story
Feb 09, 2026
GAIL Gas Limited, a wholly owned subsidiary of GAIL (India) Limited, was established in 2008 with a clear mission: to accelerate the adoption of natural gas as a cleaner, greener alternative for India’s energy needs.Starting with operations in just four cities, the company has grown into a formidable player in the City Gas Distribution (CGD) sector in India. Today, GAIL Gas holds authorisation for 16 Geographical Areas (GAs) across nine states and operates in another 9 GAs through six joint ventures in Andhra Pradesh, Rajasthan, Madhya Pradesh, Gujarat, Uttarakhand, Goa and Assam. This expansion reflects its commitment to sustainable energy and nationwide accessibility.
Present status and operational highlights
GAIL Gas has built a strong presence in India’s CGD landscape, serving over 1.1 million households, over 5,200 industrial and commercial units, and operating more than 575 CNG stations, including those managed by joint ventures. Two of its GAs—Taj Trapezium Zone (TTZ) and Bengaluru—report daily gas sales exceeding 1 MMSCMD, underscoring operational strength and infrastructure resilience. TTZ’s natural gas supply plays a critical role in preserving the environmental sanctity of the Taj Mahal, while Bengaluru has emerged as a high-performing GA, achieving CNG sales of 5.51 lakh kg in a single day.
Operationally, the company achieved 24% growth in CGD sales volume and a 30% increase in CNG sales in FY 2024-25 compared to the previous year. Despite challenges such as reduced domestic gas allocation for the CNG segment, GAIL Gas maintained uninterrupted supply through strategic sourcing and diversified gas portfolios. The company’s infrastructure footprint today spans robust pipeline networks, including over 9,500 km steel and MDPE pipeline, and advanced digital initiatives such as the launch of CNG Mitra, WhatsApp-based invoicing and chatbot services have enhanced customer convenience and operational efficiency. The successful implementation of SAP S/4HANA on RISE modernised core processes, strengthening workflow integration and digital excellence.
Financial performance
The Financial Year 2024–25 marked a milestone year for GAIL Gas, with its highest-ever turnover of Rs. 12,231 crore, EBITDA of Rs. 815 crore, and Profit After Tax (PAT) of Rs. 451 crore. The first half of FY 2025–26 continued this momentum, registering a gross turnover of Rs.6,162 crore and PAT of Rs.219 crore. A dividend of Rs. 150 crore was paid to parent company GAIL for FY 2024–25, reaffirming financial stability and value creation for stakeholders.
Future plans: merger and IPO prospects
A significant strategic development is the proposed merger of six CGD GAs of GAIL with GAIL Gas, which has received in-principle approval from both Boards and is currently under review by the Ministry. These include prime GAs such as Varanasi, Patna and Bhubaneswar and this consolidation aims to enhance synergy, operational efficiency and scale, positioning GAIL Gas as a dominant force in India’s CGD sector.In parallel, the company is exploring the feasibility of an Initial Public Offering (IPO). A detailed study is underway to assess the process and benefits of listing GAIL Gas on the Indian Stock Exchange. If implemented, the IPO would improve market visibility, strengthen governance and provide access to capital for future expansion, including investments in Tier 2 and Tier 3 cities and rural regions.
Strategic growth drivers
Several market opportunities are emerging in the CGD arena and GAIL Gas is already working to capitalise on them:
LNG for long-haul transport: With only 20 LNG stations currently operational and a goal set by the Ministry of Petroleum & Natural Gas of converting one-third of long haul vehicles to LNG, this segment is set for exponential growth. GAIL Gas is prepared to support this transition, having already commissioned an LNG station in Mandideep, Madhya Pradesh and working to establish more such as the Kosi LNG terminal, work on which has already started.
Industrial shift to clean fuel: Regulatory pressures and cost advantages are driving industries toward natural gas. GAIL Gas’s growing industrial customer base, backed by robust infrastructure and service delivery models, offers scalability and reliability.
Compressed Biogas (CBG): The SATAT initiative of the Government has highlighted CBG as a key renewable resource. To promote circular economy benefits, GAIL Gas has already started integration of CBG into its existing networks in some areas and is exploring the possibility of expanding this usage further.
Conclusion
As India targets 17,500 CNG stations and 120 million PNG connections by 2030, GAIL Gas is poised to play a pivotal role to help achieve these milestones. With strong financials, robust infrastructure and forward-looking strategies, the company is driving sustainable growth and reinforcing its leadership in India’s clean energy transition.
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