State-owned GAIL (India) Ltd plans to acquire a 26% stake in India’s first natural gas exchange which went online last week, two people aware of the matter said.
According to an expression of interest seeking an equity participation in the gas exchange, GAIL India wants to come in as a promoter with a 26% equity stake.
The document was reviewed by Mint. GAIL owns liquefied natural gas terminals and is already a member of the natural gas trading platform, which was set up by the Indian Energy Exchange.
“GAIL invites online offers from party who shall submit expression of interest (EOI) offering equity participation to GAIL in their gas exchange company established, or proposed to be established in India, for setting up gas exchange for natural gas trading and access on a pan-India basis,” the EoI said. GAIL chairman and managing director Manoj Jain told reporters on Wednesday that the state-run firm is analysing the opportunity to buy a stake in the exchange.
The Indian Gas Exchange provides a day-ahead market and forward contracts, including daily, weekly, weekday, fortnightly, and monthly, across Dahej and Hazira in Gujarat, and Odoru in Andhra Pradesh.