GAIL Opens Subsidiary Company in Singapore

GAIL (India) Limited has set up a wholly-owned subsidiary company - named as GAIL Global (Singapore) Pte Ltd in Singapore, primarily for making investments overseas. The first step towards this direction would be investments to be made by this company for the acquisition of 15% equity stake in National Gas Company, Egypt (Natgas) - one of the largest distributing companies of natural gas in the private sector in Egypt. The shares will be acquired from Egypt Kuwait Holding Company in Egypt which currently holds 67% of the shareholding of Natgas. Shell, with a shareholding of 18%, is another shareholder in Natgas.

GAIL has global business interests in countries like Egypt, Turkey, Philippines, Iran, Bangladesh, Myanmar and United Kingdom in the areas of exploration and production, gas transmission, CNG and city gas distribution, LNG and petrochemicals. In Egypt, GAIL has successfully secured participation in two retail gas companies' i.e Fayum Gas Company and Shell CNG, Egypt. The first dividend from Fayum Gas Company of an amount of US$ 0.56 million has already been received. Investment of US $22 million (Rs.100 crores) has been made in Egypt.

A commercial gas discovery has been made in the A-1 Block in Myanmar with estimated reserves of 6 tcf. The Ministry for Energy, Government of Myanmar has confirmed GAIL as the preferred buyer for the gas from the A-1 Block. Government of Myanmar is actively considering participation of GAIL in the A-3 Block. Besides, the sourcing of 5 MMTPA LNG from Iran is at an important stage of negotiation with National Iranian Gas and Energy Corporation for finalizing the commercial terms.

As part of its globalization plans, GAIL is also looking at other African and West Asian countries and is keen to associate with Egypt Kuwait Holding Company and other players in cross-country gas pipeline projects in countries like Syria, Jordan and Lebanon. GAIL 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.