State owned natural gas marketing company GAIL will invest US $7.8 billion over next four to five years in new pipeline projects, extention of existing pipelines, clean energy ventures and petrochemical plant expansion programme. The company will raise a debt of  US $4.21 to finance these projects and the rest will be raised through internal accruals.

Capital expenditure for the current fiscal year has been pegged at US $1.8 billion. The funds will be used to add another 1,200 km of pipelines that will increase GAIL’s transmission capacity to 200 metric million standard cubic meters per day (mmscmd). The company’s present transportation capacity stands at 165 mmscmd. The capacity addition programme is expected to be completed by mid 2011. About 800 km of pipelines have already been added during the last fiscal.

Besides this company is also expecting to increase the capacity of its petrochemical plant at Pata in Uttar Pradesh from 42,000 tonnes per year to to 46,000 tonnes per year. The project is expected to be completed by September this year.

The company also wants to expand its foot print in city gas distribution business and is planning to enter into city gas distribution business in Pune, Indore, Gwalior and Kota.

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