Pipeline Infrastructure Ltd Model: GAIL and IOCL’s asset monetization strategy – 18 Jul 2024

The Pipeline Infrastructure Ltd's East West gas pipeline is a great story on financial structuring

It is ring fenced by an offtake agreement with RIL

There is a water tight maintenance plan in place

And more than 30 additional customers have also signed up with the company to transport gas

Capacity utilization is low but the cost of funding long term paper is covered by the RIL's offtake payments

Similar model can be followed by GAIL and IOCL to monetize their pipelines