Business Standard reported that GAIL is not in favour of letting go its first right to buy the Asian Development Bank's 5.2% stake in Petronet LNG Ltd.
Mr BC Tripathi CMD of CMD of GAIL on the sidelines of a Ficci seminar on energy security said that "Our board has not agreed. It is strategically important for GAIL, as a major gas player, to have its position in the LNG value chain and all the infrastructure related to the import and supply of gas. Therefore, GAIL would like to have the stake of ADB. However, this is subjected to the government's approval."
Mr Tripathi said that "Besides, we have the first right of refusal. The board has not agreed to forgo the same."
GAIL and three other state run organizations Oil and Natural Gas Corporation, Indian Oil Corporation and Bharat Petroleum Corporation are the promoters of Petronet LNG, holding 12.5% stake each. France's GDF International, a wholly owned subsidiary of Gaz de France, holds 10%. The remaining equity, 34.8% is held by the public.
Last August, ADB decided to sell its entire stake in Petronet. While the promoters have approved ADB's stake sale, the purchase of the stake by any state owned company would have to be approved by the Cabinet Committee on Economic Affairs.
All four promoters had earlier evinced interest in buying the ADB stake but the move was blocked by the ministry of petroleum and natural gas, as it would have turned Petronet into a public sector company.
Mr Tripathi, however, rejected the argument, saying despite being a public sector company, GAIL contracted more LNG in 2012 than Petronet. In 2013, he said that GAIL plans to import 25 cargoes of LNG, against 16 cargoes in 2012.
Recently, Qatar had sought the intervention of the Indian government, asking GAIL (India) to give up its claim on the 5.2% stake of ADB. Qatar Petroleum International wishes to pick up ADB's stake.
