GAIL surges on plan to transport natural gas to Pakistan

GAIL is currently trading at Rs. 366.00, up by 3.80 points or 1.05% from its previous closing of Rs. 362.20 on the BSE.

The scrip opened at Rs. 363.00 and has touched a high and low of Rs. 368.40 and Rs. 358.55 respectively. So far 29623 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 485.95 on 27-Apr-2011 and a 52 week low of Rs. 346.10 on 06-Mar-2012.

Last one week high and low of the scrip stood at Rs. 371.95 and Rs. 358.55 respectively. The current market cap of the company is Rs. 46553.12 crore.

The promoters holding in the company stood at 57.34% while Institutions and Non-Institutions held 38.65% and 3.19% respectively.

State-owned GAIL’s just-commissioned natural gas pipeline from the West coast to Bhatinda in Punjab is likely to be extended to Lahore after reports on India offering export of natural gas to Pakistan, to help the country tide over its gas crisis. The company’s gas pipeline is barely 25 kilometres away from the Pakistan border.

The company is planning to import LNG at the Dahej or Hazira import terminals in Gujarat. It is also planning to move this gas through Dahej, Vijaipur, Dadri, Bawana, Nangal, Bhatinda pipeline to Punjab and then into Pakistan.

Further, a LNG terminal will take a minimum of four years to build while GAIL pipeline can be expanded into Lahore within months hence it will make economic sense for Pakistan. Moreover, GAIL’s Dabhol plant in Maharashtra will go on stream next week. Dabhol, too, is connected to the pipeline at Dahej, and any LNG imported at the terminal can also find its way into Pakistan.