GAIL (India) Limited and Indian Farmers Fertiliser Cooperative Limited (IFFCO) have signed a Memorandum of Understanding (MoU) for cooperation in natural gas sector related opportunities in India. The Agreement was signed by Shri A. K. Purwaha, Director (Business Development), GAIL and Shri V. K. Bali, Director (Technical), IFFCO in the presence of Dr. U. D. Choubey, Chairman & Managing Director, GAIL and Dr. U. S. Awasthi, Managing Director, IFFCO.
Welcoming the development, Dr. U. D. Choubey, Chairman and Managing Director, GAIL said that with the increased availability of natural gas in the country from eastern offshore, more gas is likely to be available for fertilizer sector which may be used not only by existing gas based fertilizer plants but also for other fertilizer plants in the country which are proposed to be converted to gas based. He further said that with 7000 km of GAIL’s natural gas pipeline network and upcoming additional 5500 km pipeline of GAIL, pipeline infrastructure will not be a constraint for providing gas to the fertilizer industry. He was confident that this tie-up will be successful because of shared values between the largest gas transporter and one of the largest cooperatives in the country.
Dr. U S Awasthi, Managing Director, IFFCO described the signing of the MoU as a major milestone wherein a raw material supplier has joined hands with the consumer. He also highlighted the common value systems of the two organizations such as best safety standards, emphasis of corporate governance and work ethics and hoped that the MoU will add value for both the companies.
Under this cooperation agreement, both the companies would jointly evaluate the potential of setting up of a Gas based Power Plant and other industries including Chemicals, Fertilisers, Compressed Natural Gas (CNG) & Piped Natural Gas (PNG) in India and also explore the possibility of sourcing of Natural Gas / LNG for the identified projects.
The feasibility study for identified projects would be carried out by GAIL and IFFCO jointly. Subsequently, based on the techno-economics of the project, a Joint Venture Company between GAIL & IFFCO would be formed for implementing the projects.
GAIL (India) Limited, is India's principal Natural Gas Company with activities ranging from Gas Transmission and Marketing to Processing (for fractionating LPG, Propane, SBP Solvent and Pentane); transmission of Liquefied Petroleum Gas (LPG); production and marketing of Petrochemicals like HDPE and LLDPE and leasing bandwidth in Telecommunications. The Company has extended its presence in Power, Liquefied Natural Gas (LNG) re-gasification, City Gas Distribution and Exploration & Production through equity and joint venture participations. GAIL has also globalised its business activities through equity participation in three retail gas companies in Egypt and one company in China in addition to having participating interest in three offshore blocks in Myanmar and one on-land block in Oman. For more information on GAIL please visit www.gailonline.com.
IFFCO is World’s largest manufacturer & marketer of Fertilizers in Cooperative Sector and is primarily engaged in production and distribution of nitrogenous & phosphatic fertilizers with an objective to serve Indian farmers. Starting with a modest capital of Rs. 6 lakh IFFCO has witnessed meteoric rise on the firmament of Indian Cooperative Movement. IFFCO has five state-of-the-art plants with a capacity to produce over 82 lakh MT of fertilizer per annum. Further, IFFCO has joint ventures in countries such as Oman, Senegal, Jordan and Australia etc. IFFCO has also diversified its business activities in the areas of Insurance, Power, Mobile Telephony, and Agriculture Commodity Trading & is setting up India’s first Kisan SEZ at Nellore, AP. For More details kindly visit us at http://www.iffco.nic.in