GAIL buys 33% in Tata-Total project

MUMBAI, Aug 31: Gas Authority of India Ltd (GAIL) will pick up 33.33 per cent equity stake in the Rs 2,530 crore liquefied natural gas (LNG) project promoted by the Tatas and the French energy giant TotalFina, for an investment of about Rs 283.33 crore.

Once the deal is through, each of the three partners would have a 33.33 per cent stake in the project. The project has a Total equity base of about 850 crore. This means that GAIL would have to pump in one third of this – which works out to about Rs 283.33 crore.

GAIL would also participate in the marketing and supply of gas from the joint venture project called India Natural Gas Company Ltd, they said.

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The six million tonnes per annum (MTPA) LNG project is to be se up in two phases of three million tonnes each. In the first phase, the marketing and supply of gas would be managed entirely by GAIL and TEC, the sources said.

This would mean that the joint venture would make use of the existing customer base of GAIL and TEC as well the existing supplynetwork of the former.