State gas firm GAIL India is eyeing to acquire Asian Development Bank’s 5.2% stake, which it likely to offload by 2008 end, in Petronet LNG, India’s largest liquefied natural gas (LNG) importer

GAIL, ONGC, Indian Oil and Bharat Petroleum, which hold 12.5% equity stake each in Petronet, have the initial right of refusal in case the multilateral agency (ADB) was to exit the company.

In a letter to Petronet, a copy of which was also marked to Petronet Secretary M S Srinivasan, GAIL India Chairman and Managing Director U D Choubey said, “In case other promoters are not interested, GAIL would be interested to examine the option of buying the entire 5.2% stake.”

GAIL (India) is India's major gas transmission and marketing company. It was established by the Indian Government in August 1984 to create gas sector infrastructure for sustained development of gas market in the country. Today GAIL has flourished into Gas Processing, Petrochemicals, Liquefied Petroleum Gas Transmission and Telecommunications. The company has also extended its occurrence in Power, Liquefied Natural Gas re-gasification, City Gas Distribution and Exploration & Production via equity and joint ventures participations.

In early trading (11:58 am), shares of GAIL lost 5.5% at Rs 380.95 on the Bombay Stock Exchange (BSE).