GAIL to invest in Chinese natural gas sector

21-Jan-08

GAIL India is all set to mark its foray into the Chinese market with several investments in the natural gas sector, including : * A coal-based petrochemical plant in Yulin * A compressed natural gas (CNG) project in Beijing * A coal-bed methane (CBM) project in Mongolia. GAIL is expected to sign a 50:50 joint venture (JV) with China Gas in March 2008 to execute these projects. GAIL is exploring the option of investing in the JV through its overseas arm, and could involve Arrow Energy of Australia for evaluation of CBM project. Currently, GAIL has around 6.5% stake in China Gas Holdings company along with Asian Development Bank, Sinopec and Oman Oil. A team (drawn up from both the sides) would prepare the business plan by the month-end. After preparation of preliminary documents, the team shall meet in China and finalise the business plan.