State-run gas utility GAIL has blocked the Asian Development Bank's (ADB) bid to sell its stake in Petronet LNG Ltd to Qatar Petroleum Corporation, provoking Qatari energy minister Mohammed bin Saleh Al-Sada to seek petroleum minister M Veerappa Moily's intervention.
"QPI (Qatar Petroleum) and ADB, with PLL support, have engaged in preliminary evaluator discussions. I have personally endorsed QPI to move forward as it will be a milestone for strengthening mutual cooperation between our countries. In light of GAIL's stance, there could be a possibility that ADB will not be able to proceed further in selling its shares to QPI," Al-Sada wrote to Moily.
The bone of contention is ADB's 5.2% stake in India's biggest importer of liquid gas in ships. Petronet is registered as a private firm but is half owned by four state-run oil firms of IOC, ONGC, BPCL and GAIL. If any of these promoters raise their holding, Petronet would turn into a state firm in contravention of the basis for going public in May, 2004, and would require approval for majority shareholders to change the status.
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