State-run gas utility GAIL (India) has its sights set on increasing shale gas assets and is turning to the U.S. for more supplies.
GAIL will open an office in Houston on November 1st and hopes to consolidate its presence in U.S. shale gas assets and to use knowledge gained to contribute to oil exploration in India.
“We are looking for more assets there,” chairman B.C. Tripathi said, adding, “We can’t fix a timeline but we hope something will come out in six month,” reports Domain-b.
CNBC’s Money Control reports that “Last month, GAIL agreed to buy a 20 percent stake in one of Carrizo Oil & Gas Inc’s shale gas assets in the United States and would invest a total of $300 million over the next five years.”
On Monday, GAIL announced a 19 percent jump in its second quarter net profit to $219 million.
GAIL owns India’s largest natural gas pipeline that stretches about 8,700 kilometers. The company is aiming to buy four spot LNG cargoes in December, says Oil Minister S. Jaipal Reddy.
GAIL would like to see its pipeline network increase to 10,000 kilometers by March 2012.
GAIL continues to be on the look out for LNG sources, both short and long-term. The company has plans to set up a trading desk in Singapore for LNG sourcing, as well as to look at the logistics for transporting LNG to India.
Tripathi says GAIL will initially use the desk to “focus on sourcing LNG and not on trading.”
That’s all for now,
Cori
