GAIL said in a statement yesterday that it was pursuing equity in the Beijing Gas Company and Beijing Jianggang Gas firms so it could participate in planned gas projects.

The Chinese government was adopting policies that encouraged use of natural gas in place of coal in cities, and had decided to convert all transport vehicles in Beijing to operate on CNG before the 20008 Olympics.

GAIL said it had also been offered three cities in China - Wuhu city in Anhui province, and Huainan and Yichang cities in Hubei province - for CNG projects. The projects would be executed by joint ventures between GAIL and China Gas Holding Ltd.

Last February, the Indian gas infrastructure major acquired 210 million shares in China Gas Holdings, which has a 49% stake in Beijing Jianggang Gas, with the majority (51%) stake in the firm being held by Beijing Gas Company.