GAIL lines up Rs 200cr foreign investments

Public sector GAIL India Ltd has earmarked Rs 200 crore as overseas investments for the next two-three years and will buy equity in foreign gas exploration and production (E&P) projects, a top company executive said today.

"We are also considering moving from gas distribution to gas transmission in overseas markets," Proshanto Banerjee, chairman and managing director, told reporters on the sidelines of a conference here.

Some of these projects may be implemented in alliance with Royal Dutch Shell group of companies, the world's third largest energy major, with which GAIL has entered an MoU for joint participation.

"We have told Shell that we will like to act as a complementary company to them," he said.

Banerjee said GAIL has already picked up a 22 per cent stake in Shell CNG, a city company in Cairo, and an 18 per cent shareholding in Fayum Gas Company, another city gas company which operates in the Egyptian city of Fayum.

GAIL has invested close to Rs 20 crore for picking up the stake in the two companies in which it will also provide technology assistance.

"We are also in advanced discussion with Natgas and Nyle Valley Gas companies in Egypt which also provide city gas in Egyptian cities, especially along the upper Nyle and lower Nyle regions, for a strategic investment," Banerjee said.