Reliance to sell gas pipeline firm, RGTL: reports

06 Jul 2011

RIL chief Mukesh Ambani is looking to sell Reliance Gas Transportation Infrastructure Ltd, a company that builds pipelines to carry natural gas across the India.

Ambani has approached bankers to help him sell the business, a process which is at an early stage. 

According to two people familiar with the matter, the privately owned gas pipeline business, RGTIL for short, could be worth around $1 billion.

The demand for natural gas pipelines in India has risen with the recent offshore natural gas discoveries. 

Earlier this year Britain's BP PLC offered to pay $7.2 billion for a 30-per cent stake in 23 oil and gas blocks allotted to Reliance Industries, and in addition pay $1.8 billion linked to future exploration success (See: BP to aid Reliance in oil and gas field development at KG-D6).

BP's purchase includes the D6 block in the Krishna-Godavari basin, the most promising find thus far.