The Hindu : Business : GAIL to foray into LPG retailing

Online edition of India's National Newspaper
Sunday, Feb 06, 2005

Business

Business

GAIL to foray into LPG retailing

Prashanto Banerjee

MUMBAI, FEB. 5. GAIL (India) today said it would enter the LPG retailing business by April 2006 and was in talks with parallel LPG bottlers and some multinational companies for the same.

"We have received the rights to bottle and market LPG to industrial and domestic customers from April 2006 and are doing preparatory work for it," GAIL Chairman and Managing Director, Prashanto Banerjee, told reporters here. The company produces about 1.1 million tonnes of LPG and may sell the entire produce under the retail head, he said.

GAIL is in talks with parallel bottlers and some MNC companies for it, he said, adding the company was also planning to produce about 2.5 million tonnes of LPG near its field in Myanmar and ship it to India.

It is in the process of picking up 10 per cent stake in the China Gas Company and evaluating an exploration block offered by Gazprom in Australia. Commercial production from its block in Myanmar is expected to commence from 2008, Mr. Banerjee said.

The company was looking to enter the gas futures business and had been approached by Multi Commodity Exchange for the same, he said and added it was also considering a separate trading desk.

The company had a capital expenditure plan of Rs. 3,000 crores during the current fiscal which would be hiked to Rs. 4,500 crores by the next fiscal, he said.

GAIL is organising a two-day Third Asia Gas Buyers' Summit in New Delhi from February 14 in which delegates from about 25 countries will participate, he said.

To pump money in Dabhol project

GAIL and NTPC would pick up equal stakes in the defunct Dabhol project by pumping in Rs. 500 crores each through a special purpose vehicle, Mr. Banerjee said. This was, however, subject to resolution of outstanding issues between the Indian and foreign lenders and other parties concerned, he said. While NTPC would operate the plant, GAIL would look after the LNG terminal and sourcing of LNG.

GAIL would complete the technical evaluation of the LNG terminal in next one-and-half months, he said. The Government, he said, should accord infrastructure status to the terminal and pipeline infrastructure and reduce the customs duty on LNG to zero per cent from the present 5 per cent.

With the coming up of five LNG terminals, the country could see an availability of 15-20 million tonnes of LNG in the next five years, he said. — PTI

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