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GAIL keen on acquiring BG stake in Gujarat Gas Company

15 Nov 2011 Evaluate

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.

GAIL India Share Price

165.60 0.65 (0.39%)
24-Apr-2026 16:59 View Price Chart
Peers
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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