New Delhi: India’s GAIL (India) Ltd and China Gas Holdings Ltd will form a joint venture to pursue gas sector business opportunities in India, China and other countries, a GAIL statement said on 26 June.
Both companies will have equal equity participation in the proposed company, which will initially focus on city gas distribution and coal seam gas projects.
“Subsequently, more projects shall be identified and implemented by joint venture. Project specific joint ventures will be formed along with local governments/companies, wherever it is required,” the statement said.
“GAIL’s expertise in the midstream and downstream gas sector and China Gas’ track record in securing contracts and rapid expansion shall be leveraged to make the joint venture successful,” it added.
In May 2005, state-run GAIL made a strategic investment in China Gas, acquiring a 7% interest.