GAIL for 5.2% ADB stake in Petronet

State gas firm GAIL India Ltd has expressed interest in buying Asian Development Bank's 5.2 per cent stake in Petronet LNG Ltd.

ADB is likely to exit Petronet, the nation's biggest liquefied natural gas importer, by the year end.

In a letter to Petronet, a copy of which was also marked to Petronet Secretary MS Srinivasan, GAIL India Chairman and Managing Director U D Choubey said the four state-run promoters of Petronet should be allowed to pick up ADB's shareholding.

GAIL, Oil and Natural Gas Corp, Indian Oil and Bharat Petroleum, which hold 12.5 per cent stake each in Petronet, have the first right of refusal in case ADB is to offload its shareholding in the company.

"In case other promoters are not interested, GAIL will be interested in examining the option of buying the entire 5.2 per cent of equity as this will provide us (an) opportunity for enhanced value creation for all the stakeholders of GAIL," Choubey said in the February 28 dated letter.