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Rediff.com  » Business » Gail eyeing Chinese firms' pie

Gail eyeing Chinese firms' pie

August 22, 2005 17:00 IST

State-owned gas firm GAIL India Ltd is eyeing stake in two Chinese firms implementing a project to supply CNG to Beijing by 2008, before commencement of the Olympics.

"GAIL is pursuing equity participation in Beijing Gas Co and Beijing Jianggang Gas for implementation of CNG projects in Beijing City," a company statement said in New Delhi.

China has decided to introduce CNG in Beijing and convert entire transport vehicles to gas by 2008. Currently, 20,000 buses and 80,000 taxis run on liquid fuels in Beijing.

Beijing Jianggang Gas is a joint venture formed by China Gas Holdings Ltd and Beijing Gas Co for supply of natural gas in the six suburb districts of Beijing.

GAIL holds 10 per cent stake in China Gas Holdings, which has a 40 per cent stake in Beijing Jianggag Gas Co.

"During the recent visit of a high level GAIL team led by chairman and managing director Proshanto Banerjee discussions were held with China Gas Holdings Ltd for GAIL's participation in CNG projects in Beijing municipality area as well as in the six suburb districts of Beijing," the release said.

GAIL has also been offered three cities in mainland China - Wuhu city in Anhui province, Huainan and Yichang cities in Hubei provide for CNG projects. The projects would be executed by joint venture between GAIL and China Gas Holding.

"Considering GAIL's expertise in successful CNG projects in Delhi and Mumai, China Gas Holding has proposed a separate joint venture arrangement to develop CNG business in China," it said.
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