A joint venture agreement between GAIL (India) Limited and China Gas Holdings Limited to foray into natural gas sector projects in the areas of CNG/city gas, coal bed methane, pipelines and LNG in China, India and other countries was signed today heralding a new age partnership for both the companies.

China Gas is rated by Finance Asia as the best managed company in the mainland China section of 2007 and GAIL is the first overseas strategic investor in the company. In May 2005, GAIL had made a strategic investment in China Gas by acquiring 210 million shares and it currently holds around 7 per cent equity interest in China Gas.

Dr. UD Choubey, CMD, GAIL said the partnership will ensue a faster implementation in city gas front and modular LNG systems.