GAIL teams up with EDF for U.S. gas assets

NEW DELHI Fri Feb 1, 2013 9:58pm IST

Logo of Electricite de France (EDF), is seen on a building in the financial district of la Defense near Paris April 30, 2009. REUTERS/Charles Platiau/Files

Logo of Electricite de France (EDF), is seen on a building in the financial district of la Defense near Paris April 30, 2009.

Credit: Reuters/Charles Platiau/Files

Related Topics

Stocks

   

NEW DELHI (Reuters) - GAIL Ltd(GAIL.NS) is teaming up with a unit of French group EDF(EDF.PA) to jointly scout for natural gas assets in the United States as demand in India grows, its chairman said.

"We will be working together for gas trading, gas sourcing and acquisition of gas based assets," B. C. Tripathi said, ahead of a 10-day visit to the United States beginning Saturday with oil minister Veerappa Moily.

He said state-owned GAIL would sign an agreement with EDF Trading on Saturday.

On Friday India enhanced GAIL's financial powers, allowing the firm to take investment decisions of up to 50 billion rupees without going to the government.

India, the world's fourth-largest oil importer, imports about 80 percent of its crude needs, and has been scouting for oil and gas assets overseas to satisfy rising local demand and expanding refining capacity.

Problems at the Reliance Industries-operated (RELI.NS) D6 block, off India's east coast, have curtailed domestic gas output while state-run Oil and Natural Gas Corp (ONGC.NS) is struggling with declining production at its ageing fields.

The company's head of marketing Prabhat Singh said it was an appropriate time to a strike deal in the United States, where shale gas development has led to a glut in the gas market, causing prices to plummet and meaning the government may consider exports to energy-hungry Asia.

A senior oil ministry official said Moily's visit was aimed at exploring further tie-ups with the U.S. and pushing India's case for importing gas.

India has asked the United States to supply liquid shale gas, a government source said in May, as it continues to reduce dependence on oil imports from Iran.

(Editing by Helen Massy-Beresford)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Jaitley's Health

Jaitley's Health

Finance minister back in hospital for check-up.  Full Article 

Modi's U.S. Visit

Modi's U.S. Visit

Modi to observe strict fast during maiden trip to U.S.  Full Article 

Mangalyaan

Mangalyaan

India's Mars mission a step closer to success with engine test  Full Article 

Shortage of Coal

Shortage of Coal

Coal import rush leads to port congestion  Full Article 

Alibaba IPO

Alibaba IPO

IPO ranks as world's biggest after additional shares sold   Full Article 

Bumper Sales

Bumper Sales

Apple sells more than 10 mln new iPhones in first three days  Full Article 

Asian Games 2014

Asian Games 2014

Full coverage of the 17th Asian Games as Incheon.  Full Coverage 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage