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Wednesday, Sep 09, 2009
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Business Daily from THE HINDU group of publications Wednesday, Sep 09, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Petroleum Corporate - Outlook
The next priority is to expand retail presence through CNG and PNG supply in cities and along highways. — Mr B. C. Tripathi, CMD of GAIL 
Our Bureau New Delhi, Sept. 8 GAIL (India) Ltd, which hopes to cross a revenue turnover of Rs 50,000 crore within the next few years, is examining a proposal for investing in building a pipeline from a gas field off Myanmar coast to China. Speaking to newspersons after the company’s AGM here, Mr B. C. Tripathi, Chairman and Managing Director of GAIL, said, “we have received a proposal from South Korean companies (Daewoo International Corp and Korea Gas Corp) for joining the project. We are examining the prospects.” The pipeline may cost $1.5 billion. Daewoo International holds 51 per cent operating interest in the two offshore Myanmar blocks — A1 and A3. Korea Gas Corp (8.5 per cent), GAIL (8.5 per cent) and ONGC Videsh Ltd (17 per cent), and Myanmar Oil & Gas Enterprise (15 per cent) are the other stakeholders. Myanmar had decided to sell gas from this field to China. The 890-km pipeline is likely to be built through a separate consortium. If GAIL decides to participate in the pipeline project, it may like to go through with its joint venture with China Gas, the GAIL Director (Finance), Mr R.K. Goel, said. GAIL’s investment in the pipeline project works out to be about Rs 700 crore. Domestic frontOn the domestic front, to grow further, GAIL has set forth certain business priorities for itself, Mr Tripathi said. “The first among them is to executive new pipeline projects worth $6 billion within the time frame and within the cost. The second priority is to focus on existing and new petrochemical projects including Brahmaputra Cracker & Polymer Ltd in Assam,” he said. The third priority is gas sourcing and securing gas supplies for current and future infrastructure of the company. The company will also consolidate its exploration and production business. Mr Tripathi said the next priority is to expand retail presence through CNG (compressed natural gas) and PNG (piped natural gas) supply in cities and along highways. Mr Tripathi said the company’s board has approved an investment of Rs 30,000 crore for implementing new projects in its core business areas. In the city gas distribution (CGD) projects, an investment of around Rs 3,500 crore is estimated for phased implementation of CGD and CNG projects throughout the country by 2012-13. Economic meltdownRegarding the petrochemicals business overseas, he said that due to economic meltdown the company is going slow on it. On its agreement with Reliance Industries Ltd (RIL) to buy 2.6 mscmd of D6 gas, he said, “we signed an MoU with RIL to buy 2.6 mscmd for our internal consumption. Delivery may start either any time.” India and China — Who will grab the gas? North-East pitch for Myanmar gas pipeline GAIL plans 2 pipeline projects More Stories on : Petroleum | Outlook | GAIL (India) Ltd
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