China Gas currently operates in nine cities in China. It is planning to expand operations to 40 cities.
Speaking to the media GAIL chairman and MD Proshanto Banerjee said, “The talks are still in the preliminary stage and the level of investment and equity holding is still to be decided. By March we should be in a position to know about our participation in the Chinese project.”
Banerjee believes the stake is at around 10% and it is understood the Indian firm has signed a confidentiality clause on negotiations with the Chinese firm.
On a separate note, GAIL is mulling over plans to increase its gas supplies by importing more LNG. The regassified gas will then be used to expand GAIL’s operations in more cities in India.
GAIL is currently negotiating with Iran and West African countries for the LNG. It also intends to import LNG from Australia, Malaysia and Indonesia. The LNG could either be imported through Petronet’s Dahej terminal or via a yet-to-constructed terminal of its own.
“Sourcing from these countries is part of the strategy not to depend on one region. We are already talking to Malaysian, Australian and Indonesian authorities for supplies of LNG,” GAIL’s Banerjee was quoted to have said in a report by the Indo-Asian news service.
