December 02, 2008

GAIL & China Gas to form JV for gas sector business

It is reported that GAIL India Limited and China Gas Holdings Limited will form a JV to pursue gas sector business opportunities in India, China and other countries.

As per release, both companies will have equal equity participation in the proposed company, which will initially focus on city gas distribution and coal seam gas projects. The release added that "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 release said that “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."

In May 2005, GAIL made a strategic investment in China Gas by acquiring a 7% interest.