Mukesh Ambani planning to sell RGTIL biz, says report

SINGAPORE: Billionaire industrialist Mukesh Ambani is looking to sell Reliance Gas Transportation Infrastructure business, which is into building pipelines to carry natural gas, said a media report.

The Wall Street Journal has reported that Mukesh Ambani, chairman of Reliance Industries, has contacted bankers to help him sell the business.

"The process is at an early stage and a sale may not take place," the daily said.

Quoting two people familiar with the matter, the report noted that the privately-owned gas pipeline business, known as RGTIL for short, could be worth about USD 1 billion.

"RGTIL has a gas pipeline from the landfall hub of Kakinada across the country to Gujarat on the east coast, with various connections along the way.

"RGTIL started developing the pipeline in 2005 and sold bonds in early 2009 to help finance the project, according to the offer document for the bonds," the report said.

"We do not comment on market speculation," a Reliance spokesman told Reuters when asked about the report.

In May, India's upstream regulator said Reliance was producing 48 million standard cubic metres per day of gas from the the key D6 block of Krishna-Godavari basin.

In February, BP Plc agreed to buy a 30-percent stake in 23 oil and gas blocks owned by Reliance Industries, for $7.2 billion.