Gail, IOC sign agreement for UP gas projects

The Gail (India) Ltd and Indian Oil Corporation Ltd (IOC) have signed a joint venture agreement for implementation of city gas projects in Agra and Lucknow. The two companies would form a joint venture for supply of compressed and piped natural gas in these two cities.

An agreement to this effect was inked by Gail Chairman and Managing Director Proshanto Banerjee and IOC Chairman Sarthak Behuria.

The ministry of petroleum and natural gas has allocated 0.1 million standard cubic metre a day of natural gas for the city gas project in Lucknow.

The use of natural gas in automotive and domestic sectors is expected to reduce the environmental pollution in these cities.

Gail has already committed Environment Pollution & Control Authority (EPCA) for commencement of CNG supply to automobiles in Lucknow and Agra by the end of December 2005, and the implementation will be taken up by the new joint venture.

According to Gail Chairman Proshanto Banerjee the joint venture will have the strength of retail marketing experience of IOC and the natural gas transmission and city gas distribution expertise of Gail.

The new joint venture company will commence supply of CNG to automobiles in the cities of Lucknow and Agra by the end of December.

Initially, the joint venture company will supply natural gas to 1,000 domestic, 20 commercial and 16,600 automobile consumers in Agra and to 1,000 domestic, 62 commercial and 1950 automobile consumers in Lucknow.

The proposed joint venture company will set up seven CNG stations in Agra and two CNG stations in Lucknow, in a phased manner.

Gas deal

• The joint venture is expected to have the strength of retail marketing experience of IOC and the natural gas transmission expertise of Gail
• The ministry of petroleum and natural gas has allocated 0.1 million standard cubic metre a day of natural gas for Lucknow