Execution | Efficiency | Excellence
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Sustainability Glimpses 2018 Execution | Efficiency | Excellence 1 Sustainability Glimpses 2018 Execution | Efficiency | Excellence Sustainability Glimpses 2018 Execution | Efficiency | Excellence CMD’s Message As the pace for gas-based economy accelerates and forays in new markets and geographies through expanding national gas grid and city gas projects, at GAIL, our emphasis have been on expansion across gas value chain and achieve a deeper market penetration. eing India’s flagshipWith gaining more visibility as a Global 11,400 km of Natural Gas pipeline natural gas company, GAIL player, this year marked a turning point and over 2,030 km of LPG pipeline in promotes natural gas in for GAIL as we foray into new business India, our company is now developing all spheres of economic and social area of international trade of LNG. By Natural Gas pipeline network of more growth in the country. It has been our virtue of its LNG Portfolio, GAIL today than 4,000 km across the country to consistent endeavor to achieve our is among top 10 Global LNG players. make access-to-energy for all a reality. goals and objectives. We have made As an industry pioneer, undertook systematic investments in building innovative measures of destination GAIL has been entrusted with new gas pipelines and undertaking and time swap of term contracts with responsibility of ‘Pradhan Mantri City Gas Distribution projects to cater global players to optimize value under Urja Ganga’ (PMUG) project. This to the increasing energy needs of the long-term LNG contracted from USA. project would help achieve our country. Today, GAIL has a marked its The LNG carrier- Meridian Spirit which government’s aspiration of increasing presence in the entire gas value chain has been charter hired at extremely the percentage contribution of natural ranging from exploration, processing, competitive rates is pressed into gas in India’s energy mix to ensure transmission and marketing of Natural service for voyaging scheduled a sustainable economic and social gas as well as processing of gas based cargoes from US east coast. value-added products such as LPG This year, GAIL became the GAIL receives and its transmission, other Liquid first Indian public-sector st Hydrocarbons and Petrochemicals. company to source LNG from 1 LNG Cargo Russia on a long-term. GAIL under long term During FY 17-18, GAIL registered a has contracted to import gross sale of INR 53,825.49 crore and 2.5 MMTPA of LNG from a highest ever Profit after Tax (PAT) Gazprom Marketing and of INR 4,618 crore. This rise in PAT has Trading Singapore. In midst been achieved along with 5% growth of geopolitical uncertainties, in Natural Gas Marketing segment and LNG imports from Russia will Natural Gas Transmission volumes. go a long way in mitigating Sales quantity in Petrochemicals, these risks. Liquid Hydrocarbons and LPG cooperation Transmission segment also went up by In addition to an existing Energy 17%, 15% and 11% respectively. pipeline network of over contract with Russia 1 Sustainability Glimpses 2018 Execution | Efficiency | Excellence growth through clean fuels. PMUG In order to amplify its outreach was envisaged to bring eastern states efforts, GAIL contributed 2.63% of of Uttar Pradesh, Bihar, Jharkhand, the average net profit of the preceding West Bengal, Odisha and Assam three years on CSR projects in FY 2017- under National Gas Grid. This pipeline 18 amounting to INR 91.65 crore as has been further extended by adding against the stipulated 2% spend of INR 727 kms from Barauni to Guwahati. 69.67 crores. GAIL’s CSR philosophy Gas supply through pipeline and of ‘HRIDAY’ emphasises on a multi- cascades has commenced in Varanasi, stakeholder approach. We have been Bhubaneswar and Cuttack in the first effectively engaging and collaborating quarter of FY 2018-19. Ground work reputed institutions and NGOs to for laying the CGD network in Patna, develop, assess, execute and monitor Ranchi and Jamshedpur has also projects and effectively respond started. Physical progress is in line to community challenges. GAIL with the envisaged schedule. Health, Safety and Environment has supported 31 GPS enabled and geo-fenced Mobile Medical Units City Gas Distribution networks sustainability is of highest priority at GAIL. In keeping with this philosophy, (MMU) under our flagship healthcare along the pipeline at Varanasi, Patna, project ‘Arogya’. The project Ranchi, Jamshedpur, Cuttack and various initiatives were undertaken such as Behavior Based Safety (BBS) includes Free Doctor’s consultation, Bhubaneshwar are being concurrently distribution of medicines, basic developed. GAIL has also turned a and SAP training on Environment, Health & Safety Module (EHSM) diagnostic tests and referral to other new leaf in gas retail marketing along healthcare facilities. GAIL with its Jagdishpur-Haldia & Bokaro-Dhamra to employees to upgrade their performance in their respective HSE focus on long-term approach and Natural Gas Pipeline (JHBDPL) pipeline consistent endeavor through our CSR by executing Joint Venture Agreement functions. With these efforts, FY 17-18 has been an incidence free year with projects, GAIL has been recognized with Greater Calcutta Gas Supply and awarded for excellence in CSR Corporation Limited (GCGSCL), for zero Fatalities and zero reportable injuries. In addition, GAIL achieved the practices under Hindustan PSU Award operating City Gas Network in Kolkata 2018. extending over 1,500 km and have set HSE Score of 93.45% as against the an ambitious target of connecting MoU target of 90%, Zero fatalities With the commitment and efforts over 1.4 million households. and Zero reportable injuries. of our employees, GAIL treads towards the holistic success of the GAIL, through its focussed measures, We are proud to announce that the ‘FTSE4Good Emerging Market Index’, organization to create long-term has also contributed to the National value for its stakeholders. With every initiatives that includes Make in India, a market-leading tool for investors seeking to invest in companies that year our approach to sustainability Smart Cities, Skill India, Ujjawala agenda becomes more enriched and scheme among others. Further, in a strong management of ESG risk, has included GAIL for second year in a refined through our experiences and bid to contribute to the Government’s learnings. At this exciting dawn of a effort to combat air pollution, GAIL row. GAIL as a responsible Corporate citizen is committed towards the new GAIL in the making, I, look forward supports and promotes the ‘Hawa to deepening engagement and trust of Badlo’ initiative which aims to Sustainable Development Goals (SDGs). We aim to align our business our stakeholders as we tread newer bring change in air quality through paths together and scale uncharted environment friendly practices in goals with national and global priorities. milestones. In the end, I would like day-to-day life. to thank our stakeholders for their valuable support and continued belief in GAIL. B. C. Tripathi Chairman and Managing Director GAIL (India) Limited CMD Message of GAIL Sustainability Report FY 2018 is Reproduced in this Report 2 Sustainability Glimpses 2018 Execution | Efficiency | Excellence Business Portfolio Natural Gas • Over 11400 km of Natural Gas Pipeline and Sophisticated Gas Management System • Total Sales Volume of 85 MMSCMD achieved during 2017-18 • 26 new Last Mile Connectivity rolled out during 2017-18 Petrochemicals • Total Sales of 674 TMTs Liquid Hydrocarbon of polymers from Pata • 6 Gas Processing Plants Producing • Total Production of 666 LPG, Propane, Pentane, Naphtha TMT and 205.56 TMT of etc. Polymer from Pata and BCPL respectively • Total Production Capacity of 1.3 MT • Marketer of subsidiary • Total Production of 1.28 MT during BCPL’s polymers 2017-18, of which 80% is LPG and propane • Participation in OPAL LPG Transmission • First company in India to own and operate pipelines for LPG transmission • Share of about 8% of Indian LPG market in LPG production and 4 % in LPG sales • 2038 km LPG pipeline network • Supplies to PSU Oil Marketing Companies namely IOCL, BPCL and HPCL ex-GPUs at Import Parity Price 3 Sustainability Glimpses 2018 Execution | Efficiency | Excellence City Gas Distribution • CGD networks along the pipelines at Varanasi, Patna Ranchi, Jamshedpur, Cuttack and Bhubaneshwar being developed • Set up Rich-Lean Gas Corridor and the Waste Heat Recovery Projects at Hazira & Vijaipur, respectively E & P • A part of vertical integration Participation Power & Renewables in 10 blocks (operator-1 on-land block) • 118 MW Wind Power Plant and 10 MW Solar Power Plant • Discovery of hydrocarbons and crude oil from these • Participation in RGPPL (Capacity blocks 500 MW) • Revenue of INR 631 crore from these blocks during 2017-18 • Presence in Myanmar & USA GAIL Timeline Formation HVJ Entry into Entry into Navratna of GAIL Pipeline LPG CGD Status 1984 1988 1990 1994 1997 Entry into First LNG First SPOT LNG GAIL Gas Petrochemicals Import at Dahej Formed 1999 2004 2006 2008 4 Sustainability Glimpses 2018 Execution | Efficiency | Excellence DVPL Kochi- Bengaluru Maharatna Pata-II Upgradation (IP/L) Status & BCPL 2008-11 2011-13 2013-16 USA Shale Vijaipur-Dadri- Dabhol Asset Bawana Nangal. Bengaluru Initiative LNG Contract LNG imports PANKH With Sabine Pass From Russia 2017 2018 New Contracts Bengaluru Highest PAT for PMUGY CGD of INR 4,618 crores 5 Sustainability Glimpses 2018 Execution | Efficiency | Excellence Our Footprints 6 Sustainability Glimpses 2018 Execution | Efficiency |