Gujarat Energy Limited is India’s largest city gas distribution company by sales volume, transformed through a landmark 2026 merger into a debt-free, AAA-rated integrated energy company that now spans the entire natural gas value chain - from finding the gas underground to piping it into millions of kitchens. The company was born as Gujarat Gas Limited, a pure-play city gas distributor, and became Gujarat Energy Limited when three state-owned energy entities were combined under a single roof, a move that brought exploration, trading, and renewable power into the fold alongside the original distribution network. The recurring approach that explains everything else is a philosophy of delivering affordable, reliable, and cleaner energy by controlling the entire chain - sourcing gas from its own fields and global suppliers, moving it through its own trading desk, and selling it directly to industry, vehicles, and households through a pipeline network that competitors cannot easily replicate. # Business segments Four engines at different stages - a gas-trading powerhouse that feeds a vast city-gas-distribution network, a small portfolio of producing oil and gas fields, and a modest wind-power fleet - all stitched together by the merger that created the company. ## 1. Gas trading: the sourcing engine that supplies the group and the country **India’s second-largest gas marketing company, with long-term LNG contracts worth roughly 2.96 million tonnes a year, now sits inside the same entity as its biggest customer - the group’s own city gas distribution network.** - **Long-term contracts lock in supply** - the business holds LNG purchase agreements aggregating to approximately 2.96 MTPA (about 10.66 mmscmd of gas), including two new deals signed in FY26 with Qatar Energy and Uniper Global Commodities for up to 1.36 MTPA. - **Imported 480-plus cargoes since 2009** - the trading desk sources gas from a diversified portfolio of domestic and international suppliers, bringing in LNG under long-term, short-term, and spot contracts and selling it to CGD companies, power plants, fertiliser makers, refineries, and chemical plants across India. - **Regasification capacity is pre-booked** - the business holds firm regasification contracts at the Petronet LNG Dahej terminal totalling 2.25 MMTPA, plus capacity at Mundra, so imported LNG can be converted back to gas and fed into the pipeline network without waiting in queue. - **The merger made it an in-house supplier** - roughly half the trading volume (5.3 mmscmd out of 10.2 mmscmd in FY26) goes to the group’s own CGD segment, making GEL the only city-gas company in India with direct access to a global LNG sourcing desk and its own regasification tie-ups. ## 2. City gas distribution: the pipeline network that reaches the end customer **A 45,250-kilometre pipeline network across 44 districts supplies natural gas to more than 24 lakh homes, 16,000 commercial kitchens, 4,460 factories, and 839 CNG stations - making it India’s largest CGD operation by sales volume.** - **Industrial customers are the backbone** - factories take roughly 50% of all PNG volumes, and the Morbi ceramic cluster alone drives 40-50% of industrial offtake; after a 2019 court order banned coal gasifiers in Morbi, the availability of cheaper propane led to customers shifting from natural gas to propane, reducing industrial volumes. - **CNG is growing fast on a simple math** - compressed natural gas is about 47% cheaper than petrol and 15% cheaper than diesel at the pump, which helped push CNG volumes to a record 3.6 mmscmd in Q4 FY26, up 12% year-on-year, with a vehicle base of roughly 17.68 lakh running on the fuel. - **The licence is the moat** - the Petroleum and Natural Gas Regulatory Board grants marketing and infrastructure exclusivity for each geographical area, meaning no competitor can lay pipes or sell gas in those territories until the exclusivity period ends. - **Reaching places pipelines cannot** - where no natural gas source is nearby, a virtual pipeline network of mobile cascade vehicles transports gas to remote areas in Punjab, Madhya Pradesh, Haryana, and elsewhere, with lightweight composite cylinders that halve the number of trips needed. ## 3. Exploration and production: legacy oil and gas fields that still produce **A portfolio of 16 blocks - 11 of them currently producing - generates revenue from the sale of oil and gas, though the business is now run for cash with no major new field development planned.** - **Mostly onshore, mostly marginal, mostly profitable** - the operated blocks include Tarapur, Ahmedabad, Ankleshwar, and Sanand Miroli, with participating interests ranging from 50% to 70%; the non-operated blocks are shared with partners like ONGC and HOEC. - **Loss-making assets were farmed out** - the previous owner had already exited the riskier parts of the portfolio, leaving only maintenance-level capital spending and a focus on steady production from existing fields. ## 4. Renewable power: a small wind fleet under long-term contracts **Five wind farms in Gujarat with 79 turbines and 123.9 MW of combined capacity sell electricity under 20-to-25-year power purchase agreements - a steady, low-maintenance income stream.** - **Built and contracted years ago** - the five farms, ranging from 3 MW to 52.5 MW, were commissioned between 2009 and 2012 and are all tied to long-term PPAs, so revenue is predictable and the assets require little beyond routine upkeep. # Group structure and partners **The company was formed by merging three state-owned entities - a gas trader, a pipeline owner, and a city gas distributor - into the listed CGD company, then spinning the transmission pipelines out into a separate listed entity, leaving GEL as an integrated energy company with the Government of Gujarat holding roughly 56%.** - **The merger combined the value chain** - Gujarat State Petroleum Corporation (gas trading and E&P), Gujarat State Petronet (pipeline transmission), and GSPC Energy Limited (gas trading) were amalgamated into Gujarat Gas Limited, which was then renamed Gujarat Energy Limited, effective May 2026. - **The pipelines were carved out** - the gas transmission business was demerged into GSPL Transmission Limited, a pure-play pipeline company holding close to 2,800 km of network in Gujarat and stakes in two cross-country pipeline joint ventures; GTL shares were allotted to GEL shareholders at a ratio of one GTL share for every three GEL shares. - **Strategic investments round out the portfolio** - GEL holds 49.94% of Sabarmati Gas Limited (another CGD company), 36.80% of GSPC LNG Limited (the Mundra LNG terminal), 65.45% of Gujarat State Energy Generation Limited (power), and 97.47% of GSPC Pipavav Power Company Limited (a \~700 MW gas-based power plant). - **The state remains the controlling shareholder** - post-merger, the Government of Gujarat directly owns approximately 38.80%, with other state-controlled entities taking the total to about 56%, while the balance trades on the BSE and NSE.