IOC to pick up 30% stake in GAIL's pipeline

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IOC to pick up 30% stake in GAIL's pipeline
State-owned oil and gas exploration company Indian Oil Corporation (IOC) is likely to pick up to 30 per cent stake in GAIL India's 1,550-km natural gas pipeline from Surat in Gujarat to Paradip in Odisha.

Country's largest state-owned natural gas processing and distribution company GAIL India in April this year has bagged a contract to lay the pipeline to connect the west and east coasts within time frame of 36 months. The pipeline would have a capacity to transport up to 60 million standard cubic metres of gas per day.

Confirming this news, a senior IOC official said, "Yes, we are in talks with GAIL to pick up stake in its Surat-Paradip pipeline."

Echoing for the same, a senior GAIL official said, "The 36-inch pipeline would cost over Rs 9,000 crore."

Recently, GAIL Chairman B C Tripathi had said that if IOC accepts GAIL's offer, it would contribute for its share. GAIL was investing USD 6 billion in creating natural gas infrastructure.

Read more about: indian oil corporation
Story first published: Wednesday, November 14, 2012, 9:30 [IST]
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