Mumbai: GAIL (India) Limited has set up a wholly-owned subsidiary, GAIL Global (Singapore) Pte Limited in Singapore, primarily for making overseas investments. The first step in this direction will be the acquisition of a 15-per cent equity stake in the National Gas Company, Egypt (Natgas), one of the largest natural gas distributing companies in the private sector in Egypt. The shares will be acquired from the Egypt Kuwait Holding Company in Egypt, which currently holds 67 per cent of Natgas'' shareholding. Shell, with a holding of 18 per cent, is another shareholder.

In Egypt, GAIL has successfully secured participation in two retail gas companies — the Fayum Gas Company and Shell CNG, Egypt. The first dividend US$0.56 million from Fayum has already been received. A total investment of US$22 million (Rs100 crore) has been made in the country.

A commercial gas discovery has been made in the A-1 Block in Myanmar with estimated reserves of 6 trillion cubic feet, and the ministry for energy, government of Myanmar, has confirmed GAIL as the preferred buyer. Myanmar''s government is also considering the participation of GAIL in its A-3 Block. Also, GAIL is in negotiations with the National Iranian Gas and Energy Corporation on the final commercial terms for the sourcing of 5 MMTPA LNG from Iran. As part of its globalisation plans, GAIL is also looking at other African and West Asian countries and is keen to associate with the Egypt Kuwait Holding Company and other players in cross-country gas pipeline projects in countries like Syria, Jordan and Lebanon. GAIL has offered to share its expertise in cross-country pipeline operations and city gas distribution in the UK through joint ventures and strategic alliances.