State-run gas utility Gail (India) Ltd is aiming a 10 per cent stake in China Gas Holdings Ltd, which has exclusive rights to set up city gas distribution projects in 42 cities in China.
"China Gas has offered us equity to bring value to their city gas distribution projects," Gail chairman and managing director Proshanto Banerjee told reporters here.
Gail also plans to bid jointly with Egypt's Natgas for operation & maintenance of a natural gas pipeline in Lebanon.
Natgas, Gail's partner in Egypt, brought the opportunity for obtaining the O&M contract of a 24" gas transmission pipeline from Syria to Lebanon. The pipeline is under construction and will be used to feed gas to Beddawi Power plant in Lebanon.
Gail is pursuing overseas project opportunities and has acquired equity in Egyptian companies -- National Gas Co (Natgas), Fayum Gas Co and Shell Compressed Natural Gas SAE.
Banerjee said the company has signed a confidentiality agreement with China Gas Holdings Ltd for due diligence before deciding on bidding for a share in the Chinese firm.
China Gas has plans to set up a city gas distribution grid in Beijing and other Chinese cities. China is keen to replicate Delhi's success in using natural gas as a vehicular and domestic fuel in its cities, primarily Beijing, before the 2008 Olympics.
"Gail has set up city gas distribution grids in India and in Egypt and we have been invited to share our expertise in China," he added.