NEW DELHI: State-run gas transportation company Gail India will pick up a 4% stake in the $2-billion Myanmar-China gas pipeline project, company chairman and managing director BC Tripathi said on Monday. OVL, the overseas arm of oil and gas major ONGC, will pick up another 8-8.5% stake in the pipeline project that will link two gas producing blocks A1 and A3 in Myanmar with consuming centres in the mainland China.
“The Gail board has already approved the stake pick in the pipeline project. The investment would go through once approvals from the government come,” Mr Tripathi said. OVL, along with Gail, already has a 30% interest in two gas producing blocks in Myanmar. The companies, however, could not secure gas from the project as the neighbour preferred China over India for gas sales from A1 and A3 blocks. In 2004, Myanmar had committed that Gail would be the preferential buyer of the gas but opted for China later due to political considerations.
The total investment of Gail and OVL is expected to be around $250 million (over Rs 1,000 crore) in the 870-km pipeline China National Petroleum Corporation (CNPC) is laying in Myanmar. Meanwhile, Gail’s net profit for the quarter ended December 31, 2009, zoomed 240% to Rs 860 crore as against Rs 253 crore in the corresponding period last year.
During the quarter, the company’s turnover also rose 6% to Rs 6,187 crore, as against Rs 5,812 crore in the same period last year. Gail had reported over 30% dip in its net profit for the second quarter ended September 30, 2009, due to falling margins on petrochemicals and liquid hydrocarbons. Shares of Gail closed at Rs 438.70, up 3.1%, from Rs 425.50.
“The increase in profit has come mainly on account of a 25% rise in transportation of gas and better realisation from sale of petrochemicals, LPG and liquid hydrocarbons,” said Mr Tripathi adding that gas transportation has increased largely due to availability of KG basin gas on its network.
Asked about Ratnagiri Gas and Power Project in Maharashtra (formerly Dabhol power project), Mr Tripathi said that it would reach its full capacity of around 2,000 mw by March-April this year. He said that Gail would be interested in increasing the capacity together with its RGPPL partner NTPC by another 2,000 mw.
“We have taken up the matter (of expanding generation capacity) with power ministry as well as NTPC chairman. NTPC had earlier indicated that it would like to go solo on the expansion project.
Gail would make a capex of Rs 5,500 crore in 2010-11. About Rs 4,000 crore of this expenditure will be made on expanding gas transmission network. Mr Tripathi said that it was looking at expanding gas distribution network with Egas in Egypt.
Source : http://economictimes.indiatimes.com/Oil-Gas/Gail-to-buy-4-in-Myanmar-China-project/articleshow/5474959.cms
“The Gail board has already approved the stake pick in the pipeline project. The investment would go through once approvals from the government come,” Mr Tripathi said. OVL, along with Gail, already has a 30% interest in two gas producing blocks in Myanmar. The companies, however, could not secure gas from the project as the neighbour preferred China over India for gas sales from A1 and A3 blocks. In 2004, Myanmar had committed that Gail would be the preferential buyer of the gas but opted for China later due to political considerations.
The total investment of Gail and OVL is expected to be around $250 million (over Rs 1,000 crore) in the 870-km pipeline China National Petroleum Corporation (CNPC) is laying in Myanmar. Meanwhile, Gail’s net profit for the quarter ended December 31, 2009, zoomed 240% to Rs 860 crore as against Rs 253 crore in the corresponding period last year.
During the quarter, the company’s turnover also rose 6% to Rs 6,187 crore, as against Rs 5,812 crore in the same period last year. Gail had reported over 30% dip in its net profit for the second quarter ended September 30, 2009, due to falling margins on petrochemicals and liquid hydrocarbons. Shares of Gail closed at Rs 438.70, up 3.1%, from Rs 425.50.
“The increase in profit has come mainly on account of a 25% rise in transportation of gas and better realisation from sale of petrochemicals, LPG and liquid hydrocarbons,” said Mr Tripathi adding that gas transportation has increased largely due to availability of KG basin gas on its network.
Asked about Ratnagiri Gas and Power Project in Maharashtra (formerly Dabhol power project), Mr Tripathi said that it would reach its full capacity of around 2,000 mw by March-April this year. He said that Gail would be interested in increasing the capacity together with its RGPPL partner NTPC by another 2,000 mw.
“We have taken up the matter (of expanding generation capacity) with power ministry as well as NTPC chairman. NTPC had earlier indicated that it would like to go solo on the expansion project.
Gail would make a capex of Rs 5,500 crore in 2010-11. About Rs 4,000 crore of this expenditure will be made on expanding gas transmission network. Mr Tripathi said that it was looking at expanding gas distribution network with Egas in Egypt.
Source : http://economictimes.indiatimes.com/Oil-Gas/Gail-to-buy-4-in-Myanmar-China-project/articleshow/5474959.cms
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