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India taps into Chinese energy sources

India finally announced the long awaited announcement that she will tap into Chinese energy sources. The news was significant because India and China agreed to collaborate and support each other on Energy.

GAIL, India's largest gas distributor yesterday said it had signed a memorandum of understanding to acquire a 10 per cent stake in China Gas Holdings. GAIL is the latest overseas investor to buy into the Hong Kong-listed Company’s presence in Mainland China's retail gas market.

Earlier this week, China Gas struck a similar deal with Korea Gas, which, like GAIL, agreed to a two-year lock-up period and to set up a separate joint venture with China Gas on natural gas and other energy related projects in China. Singapore's Temasek signed a preliminary deal for a 10 per cent stake last month.

According to sources, India and China will collaborate and share world’s energy sources.

Editorial Notes: A 'thin' article but a significant development, another marker of the speed with which energy is changing geopolitical assumptions. I hope the last line is idiosyncratic language, not notice of plans for world energy hegemony. Original title: "India taps into Chinese energy sources – signs of Sino-Indian collaboration in Energy sharing and prosperity". -LJ

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