New Delhi: State-run gas utility GAIL India Ltd Monday said it plans to take 4.17 per cent stake in the USD 2.01 billion gas pipeline that China is building in Myanmar to transport natural gas found off the Myanmar coast.
"Our board has approved a proposal to take stake in the pipeline that will transport gas from offshore block A-1 and A-3 to China," GAIL Chairman and Managing Director B C Tripathi told reporters here.
The board of ONGC Videsh Ltd, the overseas investment arm of Oil and Natural Gas Corp (ONGC), has also approved taking 8.35 per cent stake in the pipeline.
"The stake is subject to government approval," he said adding the proposal needs approval of the Cabinet Committee on Economic Affairs (CCEA).
OVL and GAIL will together invest USD 251.2 million in the 870-km pipeline China National Petroleum Corp is laying to take A-1 and A-3 gas to mainland China.
Tripathi said CNPC had offered 49.9 per cent stake to the consortium developing gas fields in blocks A-1 and A-3.
South Korea`s Daewoo Corp holds 51 per cent stake each in Block A-1 and A-3 while OVL has 17 per cent stake. GAIL and Korea Gas Corp have 8.5 per cent each while the remaining 15 per cent is with Myanmar`s Myanma Oil and Gas Enterprise (MOGE).
The consortium is investing USD 3.61 billion in bringing to production gas fields in the two blocks.
Prior to this, the company has already tied-up Rs 3,200 crore -- Rs 750 crore through bonds, Rs 700 crore in OIDB loans and Rs 500 crore from US EXIM bank. A term loan of Rs 1,200 crore has been negotiated with HDFC.
Tripathi said GAIL saw net profit rising by 2.5 per cent to Rs 2,229 crore in first nine months of current fiscal while turnover was up 4 per cent at Rs 18,411 crore.
During October-December, net sales from Petrochemicals business increased 27 per cent to Rs 793 crore while the same from LPG and Liquid Hydrocarbons business more than doubled toRs 710 crore. Revenues from natural gas trading, which makes up for more than half of the net profit, dropped 9 per cent to Rs 4,527 crore.