Cairn India to become gas retailer
Cairn India wants to slide from the upstream to the downstream and join the lucrative retail gas segment.
Cairn, we hear, has partnered refiner Bharat Petroleum to set up retail gas networks in some of the 13 cities under auction by the Petroleum and Natural Gas Regulatory Board. “Cairn and BPCL have hired Feedback Ventures to prepare detailed feasibility reports for these cities,†says a source.
“Expect them to be aggressive.†Feedback is also carrying out technical and commercial evaluation of the bids that will be submitted in a â€کbid advisory’ package.
†Cairn and BPCL are expected to submit a bid on March 3 for six cities put out to bid in October last year. Cairn may be new to retail gas, but BPCL is a serious player with stakes in IGL, Sabarmati Gas, Central UP Gas and Maharashtra Natural Gas.
Still unclear is from where Cairn or BPCL will source gas for their new CGD ventures. Cairn could source it from its fields while BPCL is a promoter of Petronet-LNG.