Shell in talks to buy stake in Andhra project

NEW DELHI, May 26 (Reuters): Global energy major Royal Dutch Shell is in talks with the Andhra Pradesh government for buying up to 24 per cent stake in the planned Kakinada liquefied natural gas project on the east coast, GAIL chairman BC Tripathi said on Monday.

"Shell is in talks with the Andhra Pradesh government for a stake in the project. Up to 24 per cent is available," he told reporters.

GAIL Gas, a subsidiary of GAIL (India), is a co-promoter of Andhra Pradesh Gas Distribution Company (APGDC) that will build the project in the state.

APGDC will have a 50-per cent stake and Gaz de France 26 per cent share in the project, leaving the remainder for the new partner.