BG sets up 3 units for gas distribution

NEW DELHI: The UK-based British Gas (BG) plans to invest around Rs 400 crore to capture city gas distribution markets in the South. The company has incorporated three wholly-owned subsidiaries to tap Andhra Pradesh, Tamil Nadu and Karnataka.

“The government has cleared BG Energy Holdings’ proposal to set up three wholly-owned subsidiaries to undertake gas transportation and distribution business in Andhra Pradesh, Karnataka and Tamil Nadu. The company has committed to bring in Rs 135 crore foreign direct investment for each of the three ventures,” a sources in the government said.

It is likely that BG may offer equity stakes to gas producers like Reliance Industries, GSPC and ONGC at a later date. The synergy would ensure consistent gas supply.

BG India managing director William Adamson said that there is a synergy between gas producers and distributors and “all players are talking to each other”. He, however, said that BG India was also a natural gas producer.