GAIL Plans to Sell Stake in China Gas

GAIL India Ltd plans to sell part of its 4.6 per cent stake in Hong Kong-listed city gas distribution firm China Gas Holdings, according to Press Trust of India (PTI).

The Indian company plans to keep a small strategic interest that will help it retain its board position in China Gas, Minister of State for Petroleum and Natural Gas Panabaaka Lakshmi told the upper house of the Indian parliament.

GAIL picked up equity in the company as China was 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, PTI said.

Now that the city gas distribution business is being pursued by GAIL's wholly owned subsidiary, GAIL Gas, the company feels continuation of the investment in China Gas does not appear to meet the original objectives.