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The Indian subsidiary of global gas major British Gas, BG India, is planning to float three wholly-owned subsidiaries for natural gas distribution in Andhra Pradesh, Karnataka and Tamil Nadu. These subsidiaries would be first 100 per cent subsidiaries of the company in the country.
The company owns city gas distribution outfits in Maharashtra and Gujarat, in partnership with the respective state governments and other public sector companies.
British Gas, the largest foreign investor in the country's energy sector, will use its share of gas from Krishna Godavari basin to distribute in these states.
The investment in the three projects would be over Rs 3,000 crore (Rs 30 billion). The initial investments would be mainly for setting gas terminals and distribution facility.
"BG India recently applied to the Foreign Investment Promotion Board to set up 100 per cent owned companies in these south Indian states for the development of transmission and distribution companies," said Bill Adamson, managing director, BG India.
BG India is the operator of two of the country's largest distribution companies - Gujarat Gas Company and Mahanagar Gas.
"BG India is interested in expanding its upstream oil and gas exploration and production interests in India and will pursue suitable opportunities. We are assessing data from the latest new exploration and licensing policy and will make bids for oil and gas blocks," Adamson said.
The company is in talks with a few companies to bid jointly for the new NELP blocks. In addition, the company is continuing expansion of its networks in Gujarat and Maharashtra.
"BG India's strategy is to continue the current operations efficiently. In tandem, we look for opportunities to expand our exploration and downstream portfolio," said Adamson.
The recent acquisition of 30 per cent interests in the Panna, Mukta and Tapti fields are proving to be significant assets in BG India's portfolio in the country. Along with partners, BG India's committed investment in the PMT amounts to over $900 million.
