ONGC, GAIL to take stake in China pipeline
State-run Oil and Natural Gas Corporation and GAIL India plan to take 12.5 per cent stake in the $2.01 billion (Rs 9,300 crore) gas pipeline that China is building in Myanmar to transport natural gas found in the Bay of Bengal.
Sources said the Cabinet Committee on Economic Affairs is likely to soon consider a proposal allowing ONGC Videsh, the overseas arm of the state explorer, and GAIL to invest $251.2 million (around Rs 1,170 crore) in China National Petroleum Corp’s 870-km pipeline.
Sources said CNPC has 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 Myanma Oil and Gas Enterprise.
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