The Hindu : Business : GAIL to foray into petrochemicals

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Wednesday, Aug 08, 2007
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GAIL to foray into petrochemicals

Special Correspondent

Visakhapatnam is the likely choice for the new business venture

NEW DELHI: Catching up with international competition and consolidation process, GAIL India Ltd. has decided to foray into the business of setting up a petrochemical hub by joining hands with private and public sector companies.

The company has already zeroed in on South India for setting up this petrochemical hub. It is understood that Visakhapatnam in Andhra Pradesh is the likely choice for this new business venture. “I cannot comment on the site of the project as nothing has been finalised but South India is certainly on our radar. However, we are going to provide a good model by joining hands with some PSUs and private companies. Things will become more clear within a month as certain clearances are awaited,” GAIL Chairman and Managing Director U. D. Choubey said on Tuesday.

Mr. Choubey said that another mega offshore petrochemical project outside India was also on the anvil. GAIL was joining hands with an international oil and gas giant to put in place such a big project requiring huge investment. He said the proposal had been sent to the Petroleum and Natural Gas Ministry for approval and choosing international partners was being done in a pro-active manner.

Stating that investments in China Gas Holding had been fruitful, Mr. Choubey said the value of investments had doubled but the aim was not that. “We are looking at 45 Chinese cities to start city gas distribution projects by forming a joint venture company with China Gas Holding. We are working on the kind of relationship that we will have in such kind of a project,” he added. The GAIL Chairman said that the visit of the Petroleum and Natural Gas Minister, Murli Deora, had been a successful event especially with regards to acquiring assets abroad. GAIL was following them up with the aim to consolidate on the gains. He said the company was looking at various opportunities in countries like Libya, Egypt and Algeria including city gas distribution and laying of gas pipelines in the international sector.

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