GAIL Eyes Stake in Canaport LNG Project

India's GAIL is eyeing a stake in Canaport liquefied natural gas (LNG) project in Canada, put on the block by energy giant Repsol.

Times of India has reported that GAIL is exploring a participating interest in a consortium led by Spanish major Gas Natural Fenosa (GNF), which is evaluating a bid after being approached by Respol.  Repsol is seeking buyers for its 75% stake in Canaport, valued at C$550 million (Rs 3,115 crore).

Last month the newspaper had reported that Indian energy majors were interested in buying into LNG terminals on the North American east coast for shipping gas to India at about $9.5 per million metric British thermal unit (mmBtu), which will be over 50% cheaper than current imports.

GAIL has been actively pursuing shale gas assets and buying stakes in LNG projects in North America, the reports said. It signed a 20-year sale and purchase agreement with Sabine Pass Liquefaction LLC, a unit of Cheniere Energy Partners, for supply of 3.5 million tonnes per year of LNG. The company also bought a 20% stake in one of Carrizo Oil & Gas Inc's US shale gas assets for $300 million.