Having set its foot in Egypt by buying Royal Dutch/Shell's stake in two city gas distribution firms, State-run gas firm GAIL (India) Ltd is in talks to acquire British Gas' entire holding in Nile Valley Corp and a stake in Egypt's largest city gas distribution firm.
GAIL is also in talks to buy 22 per cent stake of EK Holdings Ltd in NatGas, Egypt's largest city gas distribution company.
"Opportunities in NatGas and Nile Valley Corp in Egypt are being explored," GAIL chairman and managing director Proshanto Banerjee told a news conference in New Delhi.
EK Holdings, a Kuwait-based firm, is selling 22 per cent of its 67 per cent stake in the Rs 400 crore (Rs 4 billion) NatGas to GAIL. Shell is the other partner in the firm with 20 per cent stake.
Typically, the city gas distribution companies are into selling natural gas for domestic and industrial use and also to automobiles as compressed natural gas.
"The stake could be worth Rs 16-17 crore (Rs 160-170 million)," senior GAIL officials said, adding Cairo has stipulated that the Indian firm can acquire BG's 45 per cent stake in Nile Valley Corp only after completing acquisition in NatGas.
GAIL hopes to complete the NatGas deal this fiscal.
The state-run firm had earlier bought Shell's 19 per cent stake in Fayum Gas, Egypt and 22 per cent in Shell CNG, Egypt for about Rs 11 crore (Rs 110 million). The two companies have already paid back $0.5 million dividend to GAIL.
