Gas Natural Fenosa of Spain is eyeing the controlling stake in BG’s subsidiary Gujarat Gas of India, according to media reports.
BG’s 65 percent stake in Gujarat Gas is valued at about $700 million at the current market price.
The company acquiring the BG holding will have to make a mandatory open offer for an additional stake, valuing the total deal at about $900 million, Reuters reported.
Gas Natural Fenosa is one of the largest integrated gas and electricity companies in Spain and Latin America. The company owns a fleet of 11 LNG tankers.
India’s Gujarat Gas has in February entered into an agreement with BG India Energy Solutions to buy re-gasified LNG.
The company will buy up to 1.0 mmscmd (39,206 mmbtu/day) of re-gasified LNG for the period from April 1 to December 31, 2012 on a firm basis.
LNG World News Staff, April 9, 2012; Image: Gujarat Gas