Gail (India) will take a 10% stake in China Gas Holdings."We have signed a preliminary agreement to buy 10% of China Gas Holdings," a company official said without giving financial details.Gail will take up to 10% of the Hong Kong-listed firm through a share subscription, and has agreed not to sell the shares for two years.China Gas and Gail will form a 50:50 joint venture to invest in natural gas projects in mainland China such as urban gas networks and long-distance pipelines. The venture will also sell and distribute liquefied petroleum gas.China, whose major cities are often shrouded by smog, is keen to promote the use of cleaner burning gas and reduce its reliance on coal.The MoU with Gail follows China Gas selling 10% stake each to Korea Gas (Kogas), South Korea's dominant gas supplier, and City Gas Pte, the gas distributor unit run by Singapore's state-owned investment company Temasek Holdings.
