Once loss-making, Gujarat State Petroleum Corp makes its mark

In a year when the economy faced serious downturns due to Covid-19 pandemic, Gujarat State Petroleum Corporation (GSPC) group has emerged as a leader in the natural gas value chain.

The group has, over the years, moved away from its core business activities of hydrocarbon exploration and production activity after it faced huge financial losses in the past.

GSPC, the flagship company of GSPC group, caters to about 32-33% of natural gas demand in Gujarat. The company has been able to increase its gas marketing outreach from 17 million metric standard cubic meters per day (MMSCMD) in 2019-20 to 19 MMSCMD in 2020-21.

The transformation of GSPC from an E&P to gas trading company started about four years ago after the company exited its KG Basin block that was sold to ONGC few years ago. Slowly but surely, it started exiting the hydrocarbon blocks and is currently left with only a handful of oil and gas producing assets.

The loss-making company that was pulled up by CAG time and again in the past, earned an operating profit of Rs 1,183 crore for 2020-21.