State-run Indian company Gail intends to acquire a 4% stake in the USD $2.01 billion Myanmar-China gas pipeline. The investment of Gail and OVL a subsidiary of the Oil and Natural Gas Corporation Limited would amount to approximately
USD $250 million in the project.
Gail’s investment comes after reports that its net profits have undergone a three-fold rise in the quarter ending 31st December 2009. Profits have increased from
USD $55 million in the corresponding period in 2008 to USD $188 million in 2009 soaring 240%. This jump in profits has been attributed to a rise in the transportation of gas, and improved gains from the sale of liquid hydrocarbons, LPG and petrochemicals.
The 870 km pipeline is being constructed by the China National Petroleum Corporation in a bid to transport natural gas located off the Coast of Myanmar to consuming centres in mainland China. When built, it would “transport gas from offshore block A-1 and A-3 (in Myanmar) to China,” Gail Chairman and Managing Director B C Tripathi said. The pipeline can be seen to be another of China’s attempts to secure more energy sources globally.
Sources:
The Economic Times, “Gail to buy 4% in Myanmar-China project”, January 19, 2010, http://economictimes.indiatimes.com/Oil-Gas/Gail-to-buy-4-in-Myanmar-China-project/articleshow/5474959.cms
The Times of India, “Gail eyes 4% in Chinese pipeline, Q3 net trebles”, January 19, 2010, http://timesofindia.indiatimes.com/biz/india-business/GAIL-eyes-4-in-Chinese-pipeline-Q3-net-trebles/articleshow/5474653.cms
The Telegraph, “GAIL net triples to Rs 860cr”, January 18, 2010, http://www.telegraphindia.com/1100119/jsp/business/story_12001692.jsp
