State-run gas utility GAIL will spend Rs 54,000 crore in the next 2-3 years for expanding availability of the clean-burning fuel to cities and industries across the country in a bid to reduce the economy's carbon footprint.

“The year (2018-19) saw highest-ever capex in a single year at Rs 8,344 crore and we are investing another Rs 54,000 crore over the next 2-3 years in laying (more) gas pipelines that will feed households and industries such as fertiliser plants,” company chairman B C Tripathi said on Monday.

The expansion of GAIL's pipeline network is pivotal for the government’s plan to raise the share of natural gas in the country's energy basket to 15% by 2030 from 6% at present as part of its strategy to address climate change
The ambitious expansion plan comes in the backdrop of the company posting its highest-ever net profit at Rs 6,026 crore in the financial year ended March 31, marking an increase of 30% over the previous fiscal. Profit rose 10% in the fourth quarter to Rs 1,122 crore. The company board recommended a final dividend of Rs 1.77 per share to take the total dividend payout to over Rs 8 per share in 2018-19.


Tripathi said the company has sold its entire 5.8 million tonne of LNG (liquefied natural gas) volumes from the US till 2020 and 80%-90% beyond that year. Given the inflexibility of US LNG contracts, this is a feat in an oversupplied market and speaks volumes about the company's portfolio management.

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