Gujarat Energy Ltd expects its gas trading business to grow 25–30% by 2030–31, even as FY26 volumes declined amid global market pressures.

Gujarat Energy Ltd (GEL), the newly formed integrated energy company following the merger of Gujarat State Petroleum Corporation (GSPC) and Gujarat State Petronet Ltd (GSPL) with Gujarat Gas, expects its gas trading business to grow by 25-30% by 2030-31, even as trading volumes declined in FY26 amid a challenging global gas market.

“We do expect good growth in the gas trading business. We expect prices to be reasonable starting in 2028-29. Right now we are doing close to 10-12 mmscmd, but we do expect by 2030-31 maybe 25% to 30% growth in the gas trading business,” management told investors earlier this month. In FY 26, the gas trading volumes declined by about 19 per cent to 10.2 million metric standard cubic metres per day (mmscmd). In FY25, the volumes stood at 12.6 mmscmd.

Profitability outlook remains steady

The company also indicated that annual profitability from the business is expected to remain robust. The company said its recurring profit from gas trading could remain in the range of Rs 1,000-1,100 crore annually after adjusting for one-off items reported during FY26.

Gas trading has emerged as a key earnings driver for GEL following the merger. Managing Director Avantika Singh Aulakh described the segment as “the most value-accretive aspect” of the merger and said the erstwhile GSPC’s gas trading business had generated more than Rs 1 lakh crore in revenue and over Rs 9,000 crore in EBITDA over the last five financial years.

LNG sourcing strategy for expansion

To support future growth, GEL is expanding its long-term LNG sourcing portfolio. The company said it currently has access to about 2.96 million tonnes per annum (mtpa) of LNG under long-term contracts, and it has signed additional agreements during FY26 with QatarEnergy and Uniper Global Commodities. Management said the company continues to pursue additional long-term LNG supplies and is also evaluating contracts linked to various global benchmarks to ensure competitive, stable gas supplies.

Customer mix and geopolitical impact

The company disclosed that more than half of its gas trading volumes are supplied to city gas distribution companies, while fertiliser manufacturers account for about 27% of sales, with the balance going to refineries, power plants and other industrial consumers. Management also acknowledged that geopolitical tensions had affected supply, noting that two LNG cargoes scheduled for delivery this year had been affected by the conflict in the Middle East.

Published on June 18, 2026