GAIL (India) Limited signed an agreement with Egypt Kuwait Holding, Egypt to acquire a participating interest in National Gas Company (NATGAS) of Egypt. The agreement was signed by Mr Proshanto Banerjee, Chairman and Managing Director, GAIL (India), and Mr Moataz Al Alfi, Managing Director, Egypt Kuwait Holding Company in Delhi in the presence of Egyptian embassy officials.
Under this agreement, GAIL will acquire a 15 per cent participating interest in NATGAS at a price of US $19 million. NATGAS is the largest private local distribution company (LDC) for natural gas in Egypt with participating interests by Egypt Kuwait Holding, Shell Gas B.V., Petrogas, Jaicorp, and now GAIL (India) Limited.
Commenting on the agreement, Mr Proshanto Banerjee, Chairman and Managing Director, GAIL, said, “GAIL made an investment of US $22 million in Egypt, which is the largest investment made by GAIL in any country till date. Egypt is a focus country for GAIL and we hope that this partnership shall also help grow other business areas in Egypt and its neighbouring countries”.
Speaking at the signing, Mr Moataz Al Alfi, Managing Director, Egypt Kuwait Holding Company said, “Egypt and India have had strong historic ties. The teams from GAIL and Egypt Kuwait Holding deserve to be complimented for inking this agreement. We look forward to a lasting partnership with GAIL”.
As part of its globalisation plans, GAIL is also looking at other African and West Asian countries and is keen to associate with Egypt Kuwait Holding and other players in cross-country gas pipeline projects in countries like Jordan, Lebanon. GAIL is currently pursuing globalisation opportunities in Iran, Myanmar, Bangladesh, Turkey and the Phillipines.