GAIL India sets up Singapore subsidiary
Indiainfoline.com, 24 September 2004
GAIL India Ltd. has set up a wholly owned subsidiary company - GAIL Global (Singapore) Pte Ltd, primarily for making investments overseas. The first step towards this direction would be the acquisition of 15% equity stake in National Gas Co., one of the largest distributing companies of natural gas in the private sector in Egypt. The shares would be acquired from Egypt Kuwait Holding Co. which currently holds 67% of the shareholding of Natgas. Shell, with a shareholding of 18%, is another shareholder in
Natgas.
In Egypt, GAIL has successfully secured participation in two retail gas companies' i.e Fayum Gas Co. and Shell CNG. The first dividend from Fayum Gas Co. of an amount of US$0.56mn has already been received. Investment of US$22mn (Rs1bn) has been made in Egypt, GAIL said.
GAIL also said that it has struck gas in the A-1 Block in Myanmar with estimated reserves of 6 tons cubic feet (tcf). The Ministry for Energy, Government of Myanmar has confirmed the company as the preferred buyer for the gas from the A-1 Block, GAIL said. The Government of Myanmar is actively considering participation of the company in the A-3 Block as well, GAIL said.
Moreover, the sourcing of 5 MMTPA LNG from Iran is at an important stage of negotiation with National Iranian Gas and Energy Corp. for finalising the commercial terms, GAIL said.
As part of its globalisation plans, the company is also looking at other African and West Asian countries and is keen to associate with Egypt Kuwait Holding Co. and other players in cross-country gas pipeline projects in countries like Syria, Jordan and Lebanon, GAIL said.
The state-run gas transportation firm has already offered to share its expertise in cross-country pipeline operations and city gas distribution in United Kingdom in the form of joint ventures and strategic alliances, GAIL said.
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