In a move which would expand its city gas portfolio, GAIL has picked up 29 per cent stake in Tripura Natural Gas Company Limited. The board of directors of GAIL, in the recently held board meeting on Monday, approved the proposal.Three companies, GAIL, Tripura Industrial Development Corporation (TIDC), and Assam Gas Company Limited (AGCL) collectively would hold 49 per cent of the equity. The balance 51 per cent equity may be subscribed by one or several companies depending on their terms of participation and objectives.The present promoters TIDC and AGCL have agreed to the Managing Director’s position for GAIL. Talking to The Indian Express, GAIL chairman Proshanto Banerjee said that the move is part of the expansion plans of the company. “The company would look at more such options in the future”, Banerjee added. According to officials in GAIL, growth of infrastructure would lead to increase in the number of domestic, commercial and industrial consumers. Further, there is a good future potential for development of CNG business in the state.There is also a potential for increase in industrial and commercial customers. There is sufficient gas availability as well as demand in the area. There is a potential to expand Piped Natural Gas infrastructure and to develop CNG business. GAIL already has presence in Tripura and is supplying natural gas to industries like NEEPCO, TSED etc, officials in GAIL added.The likely additional availability of natural gas in the north-east region from Myanmar, the blocks awarded to GAIL in NELP-IV, and other sources, would lead growth of natural gas business in the state. Emergence of bulk consumers would generate additional business for GAIL.GAIL had undertaken a technical, financial and legal, in-house due diligence study of TNGCL in December 2003. The assets of TNGCL — 120 Km HDPE/MDPE pipeline network — are relatively new and are in good condition.
