Gail and China Gas join hands for gas projects

New Delhi, June 26 (UNI) State-owned GAIL (India) Ltd and China Gas Holdings Ltd (China Gas) today signed a Joint Venture Agreement (JVA) for pursuing gas sector business opportunities.

The JV will pave the way for a 50:50 per cent equity participation between GAIL and China Gas. The business of JV will primarily be related to natural gas sector projects in the areas of CNG/City Gas, Coal Bed Methane (CBM), Pipelines and LNG in China, India and other countries also, a statement said.

The agreement was signed by GAIL Director (Finance) R K Goel and China Gas Managing Director Liu Ming Hui.

GAIL CMD U D Choubey urged that the JV should be speeded up on the city gas front and could also look into possible joint working in the area of modular LNG systems which China Gas had been pursuing.

Mr Hui said GAIL was one of the first overseas strategic investors in the company, and China Gas looks forward to greater opportunities for joint working with GAIL in India and other countries.

CNG and CBM project have initially been identified by the JV.

Subsequently, more projects will be identified and implemented by the JV. Project specific JVs will be formed along with local government/Companies, wherever it is required, added the statement.

GAIL already had an investment in China Gas to the 210 million shares and it currently holds around seven per cent equity interest in China Gas.

UNI