BackGAIL may buy stake in China’s CNPC
GAIL may buy stake in China’s CNPC
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New Delhi: GAIL India Ltd may take a stake in the $1.95 billion gas pipeline that China is building for ferrying natural gas found off the Myanmar coast.
“We have received a proposal for joining the project. We are examining the prospects," said GAIL chairman and managing director B.C. Tripathi.
China National Petroleum Corp. (CNPC) is laying a 870-km pipeline in Myanmar to transport gas found in blocks A-1 and A-3 to mainland China.
CNPC has offered 49.9% stake to the consortium developing gas fields in blocks A-1 and A-3.
South Korea’s Daewoo Corp. holds 51% stake each in block A-1 and A-3 while ONGC Videsh Ltd has 17% interest. GAIL and Korea Gas Corp. have 8.5% each. Myanmar’s state-run Myanma Oil and Gas Enterprise (MOGE) has the remaining 15%.
Tripathi said the proposal that has come from Daewoo was inclined to participate in the 40-inch pipeline.
If all the consortium members decide to participate, the shareholding in the pipeline project would be CNPC- 50.9%, MOGE- 7.37%, Daewoo- 25.04%, OVL- 8.35%, GAIL and KOGAS- 4.17% each.
Gas from A-1 and A-3 will be sold to China for $7.72 per million British thermal unit at the landfall point in Myanmar. Tripathi said work on the pipeline is likely to begin “sometime next year".
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