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Indian State Company to Purchase U.S. Shale Assets

GAIL Looking to Secure LNG

Written by Swagato Chakravorty
Posted February 8, 2013 at 3:44PM

India’s state-owned GAIL India Ltd. (NSE: GAIL) plans to purchase U.S. shale assets worth roughly $1 billion. Part of this may be acquired via France’s EDF Trading.

From the Business Standard:

"We are in discussions with EDF to form a joint venture for sourcing of natural gas and trading in US," GAIL Chairman and Managing Director B C Tripathi told reporters here.

On February 2, GAIL signed a memorandum of understanding with EDF, which includes the possibility of the two companies jointly acquiring North American shale assets, in addition to allowing EDF to invest in downstream trading and marketing opportunities in India.

GAIL presently has a 20 percent stake in Carrizo Oil’s (NASDAQ: CRZO) Eagle Ford shale assets, Business Standard reports, and the company has signed up with Cheniere Energy’s (NYSE: LNG) Sabine Pass project to import 3.5 million tons of liquefied natural gas per year. It is currently looking for more LNG import opportunities.

The company is also making significant investments in developing India’s pipeline infrastructure, as well as expanding petrochemical plant capacities.

As domestic field production levels fall in India in the face of rapidly increasing demand, GAIL and other companies like it are increasingly turning toward North American LNG for import options.

 



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