GAIL (India) Ltd.

Reliance Industries’ owner -Mukhesh Ambani- is mulling to sell Reliance Gas Transportation Infrastructure (RGTIL), a business that builds pipelines to carry natural gas across the country. The PSU companies like GAIL and Oil India have shown interest in buying the privately-owned gas pipeline business, which is estimated at around Rs 10,000 crore. JPMorgan, Citi and SBI Caps have been appointed for the sale of RGTIL.

Billionaire Mukesh Ambani is planning put the block up for sale as the low gas output from the KG Basin is unable to justify large investments in these pipelines.

RGTIL operates the Rs 15,000 crore East-West gas pipeline (EWPL) that connects Kakinada to industrial hubs of Karnataka, Maharashtra and Gujarat. Even after the grant of license to build two pipelines connecting Kakinada-Vizianagaram-Srikakulam and Kakinada-Ennore-Nellore-Chennai in 2007, the company has been unable to commence the project due to unavailability of gas.

RIL commenced production of natural gas from its Dhirubhai-1 and 3 (D1&D3) fields in the Krishna-Godavari basin, the largest among the 18 gas and one oil find, back in April 2009, but output has fallen from a peak of 54 million cubic metres per day in March 2010 to 28.16 mmcmd this month. Together with 6.46 mmcmd of gas production from D-26 or MA oil field in the same area, block output is 34.62 mmcmd.