The Hindu Business Line : China Gas in talks with GAIL for CBM projects

New Delhi, April 15 China Gas Holdings Ltd is in talks with GAIL (India) Ltd and Australia’s Arrow Energy for jointly developing coal bed methane (CBM) projects in China.

Speaking to newspersons at the sidelines of the fifth Asia Gas Partnership summit, Mr Liu Ming Hui, Managing Director, China Gas Holdings, said that the company is holding talks with GAIL for CBM exploration and will decide on an equity stake soon.

3-way venture

Once the evaluation is complete the company is likely to form a three-way joint venture with GAIL and Arrow Energy for developing such projects. The two other business areas, apart from CBM, where China Gas Holdings and GAIL are tapping opportunities were city gas distribution and compressed natural gas.

China Gas Holdings is a natural gas services operator listed on the main board of Hong Kong Stock Exchange Ltd. It engages principally in the investment, operation and management of city gas pipeline infrastructure, distribution of natural gas to residential, commercial and industrial users, construction and operation of gas stations, and development and application of natural gas related technologies in China.

Oman venture

On the joint venture with Oman Oil Co, he said that the joint venture partner will begin supplying liquefied natural gas (LNG) to China from the second half of this year.

“We have a joint venture with Oman Oil Co. Different partners have different roles. We will be marketing the gas and Oman Oil Co will be responsible for supplying LNG and LPG,” he added.

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