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Gail denies LNG equity hunt Gail India has rubbished reports that it is in the hunt for equity stakes in LNG projects including Chevron’s giant Gorgon plant off Australia.
Eoin O'Cinneide 27 September 2011 15:11 GMT
The state-run gas outfit has, however, admitted that it is in talks about snapping up LNG from various unspecified companies.
India’s Economic Times reported on Tuesday that Gail was after equity stakes in Gorgon off Western Australia as well as from Algerian state-owned gas player, Sonatrach. The newspaper’s report cited an unidentified executive within Gail as saying it was after the stakes.
However, the company hit back later on Tuesday with a spokesperson telling Upstream that “news ascribing such meaning is wrong”.
Jyoti Kumar, Gail’s corporate communications manager, said: “It is not the case. We are in discussion for sourcing of LNG from different companies but not for buying equity stakes.”
Kumar did not elaborate on which companies Gail was speaking with or what countries it is looking to source LNG from.
Gail’s moves are thought to have been prompted by plummeting gas production in India along with rising demand for environmentally-benign LNG in India.
Gas production in India has been on a decline since the past nine months, with output down 5.3% year-on-year to 4.1 billion cubic metres in August.
The fall is mostly attributed to a steep decline in output from Reliance Industries' KG-D6 gas block, which Reliance staff blamed on regulatory delays.
Published: 27 September 2011 15:11 GMT | Last updated: 27 September 2011 15:16 GMT