Expect FY22 volume to be better than FY21, says GAIL

GAIL reported Q4FY21 numbers. ES Ranganathan, Director-Marketing of GAIL discussed the numbers.

“We expect to have a better FY22 compared to FY21 in terms of volumes,” he said in an interview with CNBC-TV18.

“There has largely been no impact of the second wave of COVID-19. The impact has been in the CNG sale of the city gas distribution (CGD) companies due to lockdown, but that is more than taken up by the fertiliser and power sector. So, we expect a stable volume during the lockdown also,” he added.

He is confident of having a good Q1 of FY22.

“GAIL’s portfolio is wide and we are selling 90 percent of our gas in long contracts,” he said.

Large portion of LNG coming into the country is linked to crude oil, and hence the long-term prices have also gone up, he shared.

According to Ranganathan, commodity prices rising is a worrying factor when the country is going through a pandemic.

Regarding petrochemical use, he stated, “The petchem use is on the rise, the market is better, and the price is also stable and good.”

In terms of tariff, he further mentioned, “Pipeline-wise tariff revision happens every five years, so that is on an ongoing process.”