GAIL India and China Gas Holdings have entered into an alliance for pursuing opportunities in gas sector.
A 50:50 joint venture will be set up for projects in areas of compressed natural gas/city gas, coal bed methane, pipelines and liquefied natural gas in China, India and other countries.
The venture has identified CNG and CBM projects for implementation. Subsequently, more projects will be identified and implemented.The JV will draw on GAIL’s expertise in the midstream and downstream gas sector and China Gas' track record in securing contracts.
In May 2005, GAIL India had made a strategic investment in China Gas by acquiring 210 million shares and it currently holds around 7% equity interest in China Gas.
Showing posts with label GAIL. Show all posts
Showing posts with label GAIL. Show all posts
Wednesday, July 4, 2007
Wednesday, June 27, 2007
GAIL, China Gas to form gas joint venture
GAIL (India) Ltd. and China Gas Holdings Ltd. will form a joint venture to pursue gas sector business opportunities in India, China and other countries, a GAIL statement said on Tuesday.
Both companies will have equal equity participation in the proposed company, which will initially focus on city gas distribution and coal seam gas projects.
"Subsequently, more projects shall be identified and implemented by joint venture. Project specific joint ventures will be formed along with local governments/companies, wherever it is required," the statement said.
"GAIL's expertise in the midstream and downstream gas sector and China Gas' track record in securing contracts and rapid expansion shall be leveraged to make the joint venture successful," it added.In May 2005, state-run GAIL made a strategic investment in China Gas, acquiring a 7 percent interest.
Both companies will have equal equity participation in the proposed company, which will initially focus on city gas distribution and coal seam gas projects.
"Subsequently, more projects shall be identified and implemented by joint venture. Project specific joint ventures will be formed along with local governments/companies, wherever it is required," the statement said.
"GAIL's expertise in the midstream and downstream gas sector and China Gas' track record in securing contracts and rapid expansion shall be leveraged to make the joint venture successful," it added.In May 2005, state-run GAIL made a strategic investment in China Gas, acquiring a 7 percent interest.
Thursday, June 21, 2007
GAIL, IOC enters JV for gas distribution
Gail (India) Ltd has forged a joint venture with Indian Oil Corporation (IOC) for gas distribution in Kolkata and other towns, chairman and managing director of the company U D Choubey said on Thursday.
Choubey told reporters the new company would be incorporated shortly, and the estimated investment would be around Rs 500 crore.GAIL and IOC would hold 22.5 per cent each. Other equity partners are West Bengal government (five per cent) and financial institutions (50 per cent).
Choubey said gas distribution would be possible only after completion of Jagdishpur-Haldia pipeline in 2011.In the meantime, GAIL would make efforts to source coal bed methane (CBM) from the Asansol region, following which it would be distributed in cylinders after compression. He said piped natural gas was cheaper than LPG sold in cylinders.
Choubey told reporters the new company would be incorporated shortly, and the estimated investment would be around Rs 500 crore.GAIL and IOC would hold 22.5 per cent each. Other equity partners are West Bengal government (five per cent) and financial institutions (50 per cent).
Choubey said gas distribution would be possible only after completion of Jagdishpur-Haldia pipeline in 2011.In the meantime, GAIL would make efforts to source coal bed methane (CBM) from the Asansol region, following which it would be distributed in cylinders after compression. He said piped natural gas was cheaper than LPG sold in cylinders.
Friday, May 18, 2007
Gail, HPCL in JV for Rajasthan city gas projects
Gail India and Hindustan Petroleum Corporation (HPCL) yesterday signed a joint venture (JV) agreement for city gas distribution projects in Rajasthan. The JV will have 22.5% equity holding each by Gail and HPCL, 5% by the Rajasthan government or its nominee and 50% by strategic investors/public/financial institutions.
According to an official release issued by Gail to the BSE today, the JV will take up city gas distribution projects in Rajasthan and enable use of compressed natural gas (CNG) and piped natural gas (PNG) in cities of Rajasthan for automotive and domestic use. The JV will start its operations in Kota. Gail's Vijaipur–Kota pipeline is already operational and the Kota city gas project will source its gas though this pipeline.
Speaking on the occasion, U D Choubey, CMD, Gail said: City gas distribution will be the next high growth area in gas markets in future. It is going to be a very competitive business and the two companies need to move fast and expedite the implementation of the project to ensure that the JV fully exploits the first mover advantage.
This will be the third city gas distribution JV by the companies after Bhagyanagar Gas and Avantika Gas for projects in Andhra Pradesh and Madhya Pradesh respectively.
According to an official release issued by Gail to the BSE today, the JV will take up city gas distribution projects in Rajasthan and enable use of compressed natural gas (CNG) and piped natural gas (PNG) in cities of Rajasthan for automotive and domestic use. The JV will start its operations in Kota. Gail's Vijaipur–Kota pipeline is already operational and the Kota city gas project will source its gas though this pipeline.
Speaking on the occasion, U D Choubey, CMD, Gail said: City gas distribution will be the next high growth area in gas markets in future. It is going to be a very competitive business and the two companies need to move fast and expedite the implementation of the project to ensure that the JV fully exploits the first mover advantage.
This will be the third city gas distribution JV by the companies after Bhagyanagar Gas and Avantika Gas for projects in Andhra Pradesh and Madhya Pradesh respectively.
Thursday, May 17, 2007
Fenosa eyes 10% Petronet stake
Spanish power group Union Fenosa may pick up 10% equity in Petronet LNG Ltd (PLL). The deal may come through the foreign currency convertible bond (FCCB) route. PLL was planning to float a $100-million FCCB issue.
Petronet sources said a Union Fenosa team visited its Dahej LNG import terminal in Gujarat a few months back. The team may come for due diligence again, they added.However, with regard to FCCB route, PLL may have to take a fresh government approval for the issue since the previous approval has expired.
Union Fenosa is present in 12 countries with significant interests in the gas business.
PLL is a joint venture company promoted by Bharat Petroleum Corporation, GAIL India, Indian Oil Corporation and Oil & Natural Gas Corporation. These firms hold 50% in the venture (12.5% each), floated to build and operate the country’s first LNG terminal at Dahej.
With an authorised equity of Rs 1,200 crore, the company’s other shareholders include Gaz de France (10%) and Asian Development Bank (5.2%). The remaining 34.8% equity is held by the public.
Read more in The DNA Money article.
Petronet sources said a Union Fenosa team visited its Dahej LNG import terminal in Gujarat a few months back. The team may come for due diligence again, they added.However, with regard to FCCB route, PLL may have to take a fresh government approval for the issue since the previous approval has expired.
Union Fenosa is present in 12 countries with significant interests in the gas business.
PLL is a joint venture company promoted by Bharat Petroleum Corporation, GAIL India, Indian Oil Corporation and Oil & Natural Gas Corporation. These firms hold 50% in the venture (12.5% each), floated to build and operate the country’s first LNG terminal at Dahej.
With an authorised equity of Rs 1,200 crore, the company’s other shareholders include Gaz de France (10%) and Asian Development Bank (5.2%). The remaining 34.8% equity is held by the public.
Read more in The DNA Money article.
Thursday, May 10, 2007
Gail to raise Rs 15,000 cr from overseas
GAIL (India), the country’s largest transporter and marketer of natural gas, plans to raise over Rs 15,000 crore through overseas borrowings over the next five years. This is part of the Rs 25,000 crore the company plans to spend in the 11th Five Year Plan ending 2012.
The company is also likely to sell part of its stake in Oil and Natural Gas Corporation (ONGC) to fund its projects, which include addition of almost 5,000 km of pipelines over the next five years.GAIL holds 2.4 per cent stake in ONGC, which at today’s share price of Rs 909 is worth Rs 4,672 crore.
The Company's debt to equity ratio is 0.12:1 which gives them the freedom to raise more debt. Moreover the company is close to being rated by Moody's, which will make it easier for them to raise money overseas.
The company has also lined up expenditure of Rs 2,744 crore during the current financial year. Of this, Rs 1,761 crore will be spent on laying new gas pipelines, Rs 500 crore on oil and gas exploration, Rs 146 crore on petrochemicals, and Rs 268 crore on new projects. GAIL currently generates around Rs 2,000 crore every year through its pipeline business.
Read more in The Business Standard article.
The company is also likely to sell part of its stake in Oil and Natural Gas Corporation (ONGC) to fund its projects, which include addition of almost 5,000 km of pipelines over the next five years.GAIL holds 2.4 per cent stake in ONGC, which at today’s share price of Rs 909 is worth Rs 4,672 crore.
The Company's debt to equity ratio is 0.12:1 which gives them the freedom to raise more debt. Moreover the company is close to being rated by Moody's, which will make it easier for them to raise money overseas.
The company has also lined up expenditure of Rs 2,744 crore during the current financial year. Of this, Rs 1,761 crore will be spent on laying new gas pipelines, Rs 500 crore on oil and gas exploration, Rs 146 crore on petrochemicals, and Rs 268 crore on new projects. GAIL currently generates around Rs 2,000 crore every year through its pipeline business.
Read more in The Business Standard article.
Wednesday, May 9, 2007
GAIL to borrow $623 mn for expansion
A state-run gas transmission company GAIL (India) Ltd plans to borrow Rs 25 billion ($623 million) by the end of the current financial year to fund its expansion projects over the next two years, its director of finance told reporters. "The debt from the domestic and overseas markets will be in the ratio of 40:60 per cent and we are evaluating all the options," R K Goel said on Wednesday.
Goel said the borrowing would be used to fund expansion up to 2010.
Goel said the borrowing would be used to fund expansion up to 2010.
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