» Business » GAIL to set up LPG plants in Uzbekistan

GAIL to set up LPG plants in Uzbekistan

May 08, 2006 18:13 IST

Gail India Ltd said on Monday it will set up LPG plants in Uzbekistan as part of its globalisation drive.

The LPG plants would be established along with Uzbek national oil and gas firm UzbekNefteGaz at an estimated investment of $50 to $60 million each, Gail informed the Bombay Stock Exchange.

The multiple gas based plants would have a capacity of 1 lakh tonnes per annum and produce LPG predominantly for domestic market of Uzbekistan, it said.

The decision is part of the Memorandum of Cooperation signed between Gail and UzbeNefteGaz during the visit of Prime Minister Manmohan Singh to Tashkent last month.

Under the MoC, the two companies would pursue gas sector projects including exploration and production, gas processing, production of petrochemicals and training. A joint working group would be set up and discussions for setting up LPG plants would be held during the first meeting of th group later this month.

UzbekNefteGaz, world's eight largest gas producer, would provide details of specific project opportunities in exploration and production in Uzbekistan, Gail said, adding preliminary talks in this regard have already been held.

The public sector gas transmission and marketing company had earlier taken equity stake in gas firms in Egypt and China as well as in exploration blocks in Myanmar and Oman.

Gail India's shares closed at Rs 290.90, down 0.34 per cent at the BSE.

Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group

© Copyright 2019 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.