GAIL India is eyeing a stake in Russian oil firm Lukoil's gas field in Saudi Arabia, and is in talks with the Russian firm for setting up a gas-based petrochemical project.GAIL is also in discussions with Russian gas firm Itera for setting up a city gas distribution network in Moscow to retail compressed natural gas (CNG) to automobiles and a methane-based petrochemical plant in Russia.U D Choubey, chairman, GAIL, who is in Moscow to participate in the 2nd International Energy Week, held meetings with top executives of the Russian oil and gas firms to explore the possibilities of the company's participation in gas fields, petrochemical plants and city gas projects.Choubey yesterday met the board of Lukoil and discussed the possibilities of establishing a petrochemical plant jointly with the Russian firm. He also evinced interest in GAIL picking a stake in the onland gas-rich Block A in Saudi Empty Quarter near Ghawar.GAIL and Lukoil may set up a petrochemical plant in Saudi Arabia based on the gas from the field, and also export the fuel to India in the form of liquefied natural gas. Lukoil has 80% stake in the 29,000 sq km area while the remaining 20% is with Saudi Aramco.Choubey said a joint working group of top executives from GAIL and Lukoil has been formed to prepare a concept MoU and structure and schedule of partnership between the two firms. "We are in discussions, and we should have a blueprint of areas of co-operation in next 3-6 months."
