GSPL Transmission Ltd (GTL), a Gujarat-based natural gas transmission infrastructure company, plans to invest around ₹3,500 crore over the next two to three years to expand its natural gas pipeline network, with the bulk of the investment directed towards increasing the capacity of its existing grid and extending connectivity to newer geographical areas in Gujarat.
“The capex plan is for the next two-three years. It is broadly divided into two parts. One is capacity expansion of our existing network, where we will be laying new and loop lines connecting existing entry and exit points. Apart from that, we will be covering new geographical areas within Gujarat,” the management told the businessline on Friday.
The capex plan covers about 10 pipeline and connectivity projects, aggregating approximately 700 km. This includes capacity augmentation through new and loop lines connecting existing entry and exit points, alongside the development of new pipeline corridors to expand the company’s geographical reach.
Around 60-65 per cent of the proposed capital expenditure will be directed towards capacity expansion, while the remaining investment will go towards extending the pipeline network to new areas, the company’s management said.
The expansion programme is expected to increase the capacity of its high-pressure (HP) grid to around 44 million metric standard cubic metres per day (MMSCMD) from the current 36-37 MMSCMD, as determined by the Petroleum and Natural Gas Regulatory Board (PNGRB). This represents an increase of approximately 20 per cent in the grid’s rated transmission capacity.
The major capacity expansion projects include the Anjar-Palanpur and Dahej-Bhadbhut pipelines. Although both locations are already connected to the existing gas grid, the company is laying additional pipeline infrastructure to facilitate higher gas transportation volumes and strengthen connectivity across its network. The Anjar-Palanpur pipeline, spanning approximately 284 km, is one of the largest projects under the expansion programme. Other key projects include the 98-km Jamnagar-Dwarka pipeline, the 71-km Vapi-Tarapur pipeline and the 36-km Dahej-Bhadbhut pipeline.
The broader portfolio also includes several spur lines and customer connectivity projects, such as Vantewad-Rajpipla, Botad-Jasdan, Mundra-Mandvi, Amreli-Kunkavav, Bhayla and Borosil, taking the overall project pipeline to more than 10 projects and approximately 700 km. The company’s existing pipeline network of around 2,900 km is expected to expand to more than 3,600 km following the completion of the planned additions. The expanded network will strengthen transmission capacity while improving access to new gas-consuming markets and industrial demand centres.
GTL is also looking to extend its network to areas such as Jamnagar, Dwarka, Rajpipla, Jasdan, Mandvi and Bhayla. The 98-km Jamnagar-Dwarka pipeline is expected to provide connectivity to Sun Petrochemical’s exploration fields in the region, which could emerge as a new entry point for natural gas into the grid once the fields are developed. The pipeline will also cater to city gas distribution networks being developed in Dwarka. The proposed connectivity to newer geographical areas is expected to facilitate the development of local gas distribution networks and bring additional industrial and domestic consumers onto the natural gas grid.
On funding, the company said the expansion would be largely financed through internal accruals, supported by cash balances and operating cash flows. GTL had cash and bank balances of around ₹2,000 crore, according to the management. “The plan has been there for the last three-four years, and accordingly, we have been maintaining internal accruals which will fund this capex. The majority of the capex will be funded through internal accruals. As of now, we are having a cash balance of around ₹2,000 crore. In case of a shortfall, we might avail debt,” the management said.
The company said the projects had been delayed to some extent because of regulatory approval-related issues, with implementation beginning only during the previous financial year. It has since awarded EPC contracts for several projects, with engineering and physical construction activities underway.
While Gujarat remains the company’s core market, GTL has also expanded its geographical presence through its subsidiaries, GSPL India Gasnet Ltdi (GIGL) and GSPL India Transco Ltd (GITL). These subsidiaries provide GTL with exposure to gas transmission opportunities across northern, western, central and southern India, diversifying its network beyond its home market. GIGL operates approximately 1,439 km of cross-country pipeline, with another 120 km under construction.
Its network spans Gujarat, Rajasthan, Haryana and Punjab, providing connectivity to multiple industrial and gas-consuming centres. GTL holds a 52 per cent stake in the subsidiary, with the balance held by Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation.
GITL, in which GTL also holds a 52 per cent stake, operates approximately 365 km of pipeline connecting Kothapalli/Tadepalligudem in Andhra Pradesh to Ramagundam in Telangana, catering to the fertiliser plant of Ramagundam Fertilizers and Chemicals Ltd (RFCL). The pipeline forms part of the proposed Mallavaram-Bhopal-Bhilwara-Vijaipur pipeline system and operates on an open-access basis. Together, the subsidiary networks extend GTL’s transmission footprint into additional gas-consuming regions, providing connectivity to city gas distribution networks, refineries, fertiliser plants and industrial demand centres.
The subsidiaries also offer an additional avenue for growth as transportation volumes improve and their respective networks move towards higher utilisation. During Q2FY27, GIGL recorded transportation volumes of 5.49 MMSCMD, up 27 per cent year-on-year, while transportation revenue increased 13 per cent to ₹81.49 crore. GITL recorded transportation volumes of 1.68 MMSCMD, registering 137 per cent year-on-year growth, while transportation revenue increased 18 per cent to ₹26.29 crore.
GTL reported standalone revenue of ₹289.6 crore in the September quarter, up 8.4 per cent year-on-year, while net profit rose 2.2 per cent to ₹120.4 crore. Total pipeline transportation volumes increased to 45.5 MMSCMD in Q2 FY27 from 40.4 MMSCMD in the corresponding quarter last year.
Published on November 6, 2026
