GAIL’s shares fell by over 2% after the company announced a revision in the completion schedule for the Srikakulam-Angul and Mumbai-Nagpur pipeline projects. The new schedule shifts the completion of the Srikakulam-Angul pipeline from September 2024 to June 2025, primarily due to pending forest permissions for the spur pipeline section. As of 10:21 AM, GAIL shares were trading 1.08% lower at ₹234.41 on the NSE.
Details of the Srikakulam-Angul Pipeline Project
- Pipeline Length: 745 km (Main Pipeline: 423 km, Spur Pipeline: 322 km).
- Revised Schedule: The main pipeline laying has been completed, with anticipated readiness for gas-in by December 2024. However, forest permissions for a 56 km section of the spur pipeline are still pending, pushing the estimated completion to June 2025.
Key Points of the Revision
The revision was approved by the Board of Directors in their meeting held on September 27, 2024, which began at 2:00 PM and concluded at 4:20 PM. The main pipeline of 423 km is complete and is expected to be ready by December 2024 for gas input, while the spur pipeline’s completion is delayed due to regulatory permissions, now expected by June 2025.
Market Reaction
Following the announcement, investor sentiment towards GAIL dipped, leading to a 2% drop in the share price. The delay in project completion, particularly the dependence on regulatory clearances for the spur pipeline, has contributed to the fall in GAIL’s share price on the NSE.
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