Cairn keen to pick up 50% stake in Rajasthan gas distribution project

Company already started producing about 30 mmscf of gas per day from its Raageshwari Deep Gas field

Anil Agarwal-led Cairn India Ltd has expressed interest in picking up a 50% stake in an upcoming joint venture (JV) project by Rajasthan State Petroleum Corporation Ltd (RSPCL) and GAIL to develop the gas supply and distribution network across Rajasthan.

Both state-run GAIL and RSPCL had signed a joint venture agreement in this regard in November 2012, based on which GAIL would have 26% stake and RSPCL would have 24% stake, while the remaining 50% stake in the JV would be available for private players.

In a letter to the chief secretary of Rajasthan, the company has officially expressed interest to pick up the stake. “Cairn India would be delighted to be a part of this landmark project. We will be keen to take up a portion of the remaining 50% equity share available to private investors,” said P Elango, chief executive officer, Cairn India.

The company has already started producing about 30 mmscf of gas a day from its Raageshwari Deep Gas field and as associated gas along with crude oil from Mangala and Bhagyam fields in Rajasthan. This production is currently being used to meet the energy requirements at the Mangala Processing Terminal and a 600 kilo metre crude oil pipeline primarily for the purpose of heating the waxy crude produced from the block.