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GAIL to buy US shale gas assets

13 Apr 2011 Evaluate

Following in the footsteps of Reliance Industries (RIL), GAIL plans to buy shale gas assets abroad. The state-run company may soon buy nearly 20 per cent stake in two shale gas acreages Eagle Ford shale and Barnett shale in the US. The deal size could be over Rs 1,000 crore.
The Eagle Ford shale is located in multiple destinations in South Texas while Barnett is the largest onshore natural gas field in the US. According to the Rail Road Commission of Texas website, production of natural gas at the Eagle Ford shale rose from 16 billion cubic feet (bcf) in 2009 to 64 bcf in 2010.
GAIL is already present in exploration of coal bed methane, another unconventional gas. Primarily a gas marketing and transport company, with interests in petrochemicals, GAIL has two oil and gas blocks in Myanmar. The US acquisition would be its first foray into overseas unconventional gas.

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Indraprastha Gas 167.25
Mahanagar Gas 1136.55
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