Shell in talks to buy 24% stake in LNG project in Andhra

GAIL Gas is a co-promoter of Andhra Pradesh Gas Distribution Company that will build the project

Global energy major Royal Dutch Shell is in talks with the Andhra Pradesh government for buying up to 24% stake in the planned Kakinada liquefied natural gas project on the east coast, GAIL chairman B C Tripathi said on Monday.

"Shell is in talks with the Andhra Pradesh government for a stake in the project. Up to 24% is available," he told reporters.

GAIL Gas, a subsidiary of GAIL (India) , is a co-promoter of Andhra Pradesh Gas Distribution Company (APGDC) that will build the project in the state.

APGDC will have a 50% stake and Gaz de France 26% share in the project, leaving the remainder for the new partner.