British Gas (BG) India is planning to invest over $500 million in the country over the next three years. Having bought out Enron from the Panna, Mukta and Tapti oil and gas fields, the company has committed investments of yet another $250 million in the unincorporated joint venture.
The remaining $250 million will be spent on the company's exploration and production activities, its proposed liquefied natural gas (LNG) terminal at Pipavav in Gujarat, telecom ventures and on its three existing gas marketing joint ventures in India.
Having invested around $20 million to create a broadband network in Surat, BG India has now set its sight on Mumbai. The company was planning to invest in the broadband infrastructure in Mumbai, along with the gas distribution lines of its joint venture in the city, Mahanagar Gas, Nigel Shaw, BG India's country head, said.
BG India's parent company's board of directors had approved the proposal to invest the sum in the country, Shaw added. British Gas had in February bought Enron's 30 per cent stake in the Panna, Mukta and Tapti fields for $350 million.
"The investment in the Panna, Mukta and Tapti fields will be made in two phases. Initially, British Gas will invest around $50 million to maintain the productivity level of these fields. In the second phase, we will invest an additional $115-200 million to enhance the productivity," Shaw said. The investments in these fields will only be BG India's contributions. Oil & Natural Gas Corporation and Reliance Industries, which hold 40 per cent and 30 per cent stakes, respectively, in the fields, may invest additional amounts in proportion to their stakeholding. However, Shaw said these companies would evaluate their investments individually.
"The investment proposals were discussed before we bought Enron's stake in these fields. We have only fine-tuned them," Shaw added.
The company was also looking at expanding the distribution business of compressed natural gas as domestic cooking fuel to other Indian cities from Mumbai and Delhi, Shaw said. He, however, declined to give details.
Freezes DPC bid
British Gas has decided to put its plans to acquire the Dabhol power project on the backburner. British Gas India CEO Nigel Shaw said,
