GAIL India is planning to buy the controlling stake in British gas major BG's subsidiary in Gujarat as it prepares to compete with oil major BP and Reliance in the gas marketing business. BG is divesting its 65% stake, which it had acquired for Rs 170 crore in 1997, in Gujarat Gas (GGCL), the country's largest private-sector gas transmission and distribution firm.
GAIL has been looking for opportunities to enlarge its city gas distribution business. For households, piped gas is competitively priced and saves consumers from the trouble of booking and replacing LPG cylinders. Gail was eyeing Gujarat Gas' network of pipelines and customers. The two companies are already partners in Mahanagar Gas, which distributes gas in Mumbai.
Recently, GAIL was anticipating to finalize a deal in next one to two months to buy around 0.5 million to 1.0 million tonnes of liquefied natural gas (LNG). The deal duration could vary from 1-3 years.
| Company Name | CMP |
|---|---|
| GAIL India | 165.60 |
| Gujarat Gas | 383.05 |
| Indraprastha Gas | 164.55 |
| Mahanagar Gas | 1129.20 |
| Adani Total Gas | 627.00 |
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