ExxonMobil Corp., the world's most valuable energy company, may shortly form a partnership with state-owned GAIL (India) Ltd to set up a green energy platform in India.

The US oil firm's increasing focus on India is an acknowledgement of the growing importance of the world's third largest energy consumer. The proposed joint venture (JV) to be announced shortly by the Irving, Texas-based firm also marks a change in the global energy architecture, with India at the centre of oil majors' future growth plans.

The proposed ExxonMobil-GAIL tie-up comes against the backdrop of Infrastructure Leasing and Financial Services Ltd (IL&FS) agreeing to sell its 874 megawatts (MW) operational wind energy portfolio to the state-run gas utility for ₹4,800 crore in its first asset sale since it started defaulting on payments last year.

“The discussions are on. We are likely to make an announcement in a fortnight or so," said B.C. Tripathi, chairman and managing director, GAIL (India) Ltd.

Oil giants are looking to diversify and invest in India's green economy as the conventional hydrocarbon space undergoes technological disruption. For example, Malaysia's state-run oil and gas company, Petroliam Nasional Bhd or Petronas has acquired Amplus Energy Solutions Pvt. Ltd, one of India's largest rooftop solar power producers.

“Gail will tie up with ExxonMobil for a new energy venture. They will set up a joint venture for green energy sources. ExxonMobil will invest in it. The idea is to expand their clean energy presence," said a second person aware of the development, requesting anonymity.

With the biggest expense being the cost of capital in the green energy business, the financial heft of global oil majors will help India's clean energy sector. India has been working on the largest clean energy programme and has an installed renewable energy capacity of 74.79GW. Of this, solar and wind power accounts for 25.21GW and 35.14GW, respectively. India's energy demand is expected to grow at 4.2% over the next 25 years.

An ExxonMobil spokesperson said in an emailed response on 10 May, “We do not have any information for your story." The spokesperson instead recommended Mint to contact the US-India Strategic Partnership Forum (ISPF) and the Federation of Indian Petroleum Industry (FIPI), an industry coalition

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