GAIL may buy stake in China's CNPC

State-run gas utility GAIL India may take a stake in the $1.95-billion gas pipeline that China is building for ferrying natural gas found off the Myanmar coast.

"We have received a proposal for joining the project. We are examining the prospects," GAIL chairman and managing director B C Tripathi told reporters.

China National Petroleum Corp is laying a 870-km pipeline in Myanmar to transport gas found in blocks A-1 and A-3 to mainland China.

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 ONGC Videsh Ltd has 17 per cent interest. GAIL and Korea Gas Corp have 8.5 per cent each. Myanmar's state-run Myanma Oil and Gas Enterprise has the remaining 15 per cent.

Tripathi said the proposal that has come from Daewoo was inclined to participate in the 40-inch pipeline.

If all the consortium members decide to participate, the shareholding in the pipeline project would be CNPC- 50.9 per cent, MOGE- 7.37 per cent, Daewoo- 25.04 per cent, OVL-  8.35 per cent, GAIL and KOGAS- 4.17 per cent each. Gas from A-1 and A-3 will be sold to China for $7.72 per million British thermal unit at the landfall point in Myanmar. Tripathi said work on the pipeline is likely to begin 'sometime next year'.