GAIL ties up with EDF Trading

Move to jointly acquire, develop upstream oil & gas assets in North America

In an effort to increase its foothold in the United States, GAIL India has tied up with global energy marketing major EDF Trading to jointly acquire and develop upstream oil and gas assets in North America.

The state-run company has signed a memorandum of understanding (MoU) with the French company last week to partner in trading and optimization of the US gas and liquefied natural gas.  “The advent of shale gas in the US bodes very well for the global hydrocarbon landscape and this partnership is expected to look for business opportunities in this exciting space in order to enhance the oil and gas sourcing prospects for India,” said M Veerappa Moily, minister of petroleum and natural gas.

GAIl already has presence in the US through a 20% stake in Eagle Shale gas assets in Texas by Carrizo Oil and has also looking to import 3.5 million tons of from Cheniere Energy's shale gas asset. “GAIL has extensive infrastructure in the midstream and downstream gas value chain and we are well positioned to meet the growing domestic demand in India,” said B C Tripathi, chairman and managing director, GAIL.

According to reports, GAIl was looking to spend around $1 billion for acquiring shale gas assets in the US.  “There are significant opportunities in the North American gas markets and we are pleased to be partnering with GAIL in jointly developing this business”, said John Rittenhouse, Chief Executive of EDF Trading. We are looking forward to building a long term relationship with GAIL", he said.