GAIL interested in buying a stake in RGTIL
Filed Under: Business | Posted: 10/29/2012 at 4:35AM
Comments | Region: India
State owned gas utility GAIL India Ltd, India’s largest gas transmission and marketing company, expressed interest in buying a stake in RGTIL (Reliance Gas Transportation Infrastructure Limited ), owned by Mukesh Ambani. When asked about the same, the Chairman and Managing Director BC Tripathi stated that gas transmission is their core business and that they are evaluating the opportunities. After examining and assessing them, they will take a decision when they feel is the right time. He also mentioned that their decision will be based on commercial, technical and legal factors.
Around 11 companies including GAIL and Oil India Limited have shown interest in buying a stake in RGTIL. Previously a subsidiary of RIL, the company launched in March 2003 operating in the East- West pipeline stretches from Andhra Pradesh to Gujarat was transferred to Mukesh Ambani, Chairman and Managing director of RIL.
This East- West gas pipeline that it operates stretches upto 1,396-km and has a per day capacity of 80 million standard cubic meters and is a 48 inch pipeline that extends from Kakinada in Andhra Pradesh to Bharuch in Gujarat carries natural gas from the KG-D6 fields.
The 5 million tonne Dabhol LNG terminal will be commissioned by January according to GAIL. It also stated that the the demand for energy is constantly rising in our country and India is scouring for resources to import gas. They may endeavor to increase LNG Terminal capacity to 50 million tonnes from 13.5 million tonnes in a year for the next five years.
The Government had sanctioned the proposal by Relogistics Infrastructure Limited (Relog) that is an arm of RIL, to lay four pipelines- Kakinada-Basudebpur-Howrah pipeline, Kakinada Chennai Line, Chennai – Banglore- Manglore pipeline and Chennai Tuticorin line. However, the Oil Ministry has not yet approved them owing to less than expected growth. However,Relog has made sufficient growth overcoming the adverse conditions. The reasons for the less than expected growth were beyond its control and lack of source of gas transportation. At present, it has even agreed to submit performance bank guarantee (PBG) for authorized pipelines.