GAIL loses race for $5.7 bn Nabucco deal

GAIL India is out of the race to pick up a stake in the 3,300-kilometre Nabucco gas pipeline from the Caspian Sea to Central Europe, Nabucco Gas Pipeline managing director Reinhard Mitschek said on Monday.

Twelve companies from North America, Europe and Asia had expressed interest in buying stake in the $5.7 billion pipeline project, he said.

"GAIL has been left out as it neither has upstream presence in the Caspian or West Asia nor any downstream activity in the European market, which were the parameters for selecting additional participants for the project," Mitschek said on the sidelines of the Fourth Asia Gas Partnership Summit.

"Only four companies have been shortlisted. Currently, we are finalising negotiations with them. The final decision will be announced in the second half of this year," Mitschek said.

GAIL had sent an expression of interest for participation in the Nabucco Natural Gas Pipeline Project in August last year. It had also offered its services for carrying out operations and maintenance for the proposed pipeline.

The pipeline will be running from the Georgian-Turkish border and the Iranian Turkish-border to Central Europe via Turkey, Bulgaria, Romania, Hungary and Austria. Shares of GAIL closed at Rs 275.65 on the National stock Exchange, down 0.9 per cent over Friday.