Gail eyes stake in assets abroad
Mint. "We always keep looking out for possibilities world over and if there are assets, especially if there are producing assets available or near producing assets available, we will be more than interested to have our stakes in those assets. Several discussions are also going on," he said.
Gail, which already holds stakes in 10 exploration and production blocks in the country, has participating interest in two blocks -- A1 and A3 -- in Myanmar and 20% stake in a shale gas joint venture in Eagle Ford Basin, Texas, US. The company is part of a consortium in two offshore exploration and production blocks in Myanmar.
These blocks produce around 15.33 million metric standard cubic meter per day (mmscmd) of gas which is supplied to China through South East Asia Gas Pipeline Company Ltd in which GAIL is also an equity partner, according to its annual report for FY23. Primarily a natural gas infrastructure, marketing and trading company, revenues from GAIL's exploration and production business accounted for about 0.8% of its total revenue from operations in the last financial year.
Its operational revenue from its E&P activities stood at ₹1,134 crore, out of the overall revenue from operations at over ₹1.45 trillion. The development comes at a time when the energy market has witnessed massive volatility in the past two years with a Gazprom arm reneging on its contracted supplies to Gail starting May 2022, for around a year on high spot prices.
Gazprom’s former subsidiary, Gazprom Marketing and Trading Singapore (GMTS), had signed an agreement with GAIL to supply 2.5 million tonnes of LNG per annum for 20 years, starting in 2018-19. Speaking on the supplies from Gazprom under the long-term term contract, Gupta said: "That supply
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