(FE)
Amid reports that GAIL (India) may be split into marketing and gas pipeline verticals, Indian Oil (IOC)—which has shown interest in acquiring the gas utility—reckons that either divisions or the total business of GAIL offers synergies for the oil marketing company (OMC).
“Whatever plans GAIL has in future in terms of expanding infrastructure, we can do that and there is a possibility of integration to execute the plans faster. That is the advantage when it comes to infrastructure as we have the strongest petroleum pipeline in the country. In terms of marketing, we are already sourcing and supplying gas, and our refineries themselves are large consumers of gas. So even when it comes to marketing we have synergies,” said IOC chairman Sanjiv Singh.
Petroleum minister Dharmendra Pradhan last month had said GAIL should concentrate on creating gas infrastructure in the country as marketing can be done by other companies as well. Meanwhile, Pradhan informed Parliament last week that IOC and Bharat Petroleum Corporation have shown interest in acquiring GAIL.
