BPCL-GAIL JV to market CNG in Kerala, Karnataka

Bharat Petroleum Corporation (BPCL) and GAIL (India) will float a joint venture "" God's Own Gas Company (Go Gas) "" for marketing compressed natural gas (CNG) and piped gas in Kerala and Karnataka.

GAIL and BPCL have signed an MoU for the Rs 400 crore venture. The equity structure of the JV will be similar to Indraprastha Gas "" the gas supplier in Delhi.

GAIL will own 22.5 per cent stake in the company, BPCL 22.5 per cent, Kerala government 5 per cent and the rest will be held by strategic investors, public and financial institutions.

"We are waiting for the gas to come from Petronet's Kochi LNG terminal," said Rajiv Mathur, general manager, business development, GAIL.

Petronet's upcoming liquefied natural gas (LNG) terminal in Kochi is facing delays. The terminal is now scheduled to be commissioned in 2011. It was expected to be ready by June 2010 after missing the 2009 deadline.

Petronet's Kochi terminal, which will be the country's fourth LNG terminal, will handle 5 million tonnes per annum LNG.

The Petroleum and Natural Gas Regulatory Board in November 2007 had proposed a competitive bidding process to select public and private entities for developing city gas distribution networks in the country.