China Gas offers GAIL participation in Petrochemical Project in Mongolia

August 31, 2005 GAIL (India) limited received an offer from China Gas Holdings Limited (CGHL) for participation in a gas based petrochemical project which is to be established in Humor, Inner Mongolia. The feasibility study of the project has been prepared.

The offer follows the discussions of Mr Proshanto Banerjee, C&MD, GAIL had with China Gas Holdings on the business opportunities in gas sector in China and neighboring countries during his recent visit to China. During the occasion, GAIL expressed its interest for participation in several gas based gas projects, including gas based petrochemicals projects.GAIL is currently examining the offer and will participate in the project subject to favorable techno-economics.

GAIL, as a part of its globalization strategy, is seriously pursuing various international business opportunities in the natural gas sector. GAIL entered into the fast growing Chinese Gas Market by taking equity participation in China Gas Holdings Limited (CGHL), a company which holds concession rights for setting and operating CNG and City Gas Distribution projects in 48 provinces in China.