GAIL may buy stake in Reliance gas fields

 The draft MoU for co-operation between the two firms states that Gail "shall consider farm-in opportunity in RIL's D6 field on mutually acceptable terms. Further, both parties may jointly explore farm-in opportunities in other blocks owned by them."

 Industry sources said the two companies were negotiating the MoU, which is likely to be finalised in a month.

 The MoU provides for the two companies floating a JV to supply piped natural gas to domestic and commercial sectors as well as CNG to automobiles. The states identified for co-operation include Rajasthan, Gujarat, Karnataka, Kerala and West Bengal.

 While Reliance will supply gas from its K-G field, Gail would bring to the table its vast pipeline network to take the fuel to various cities. Gail will also extend co-operation in sale and transmission of RIL's gas through its pipeline network.

 "Gail and RIL shall mutually discuss the possibility of jointly developing the pipeline infrastructure from K-G basin for integrating with Gail's existing pipeline grid, so that gas from the RIL field could be brought to market centres across the country," the proposed MoU papers said.