Gail in deals with Bangla, Iranian firms

Gail India today signed a slew of agreements, including a deal for setting up petrochemical plants in Iran and India and MoUs for equity participation in the Tripura Natural Gas Company and China Gas Holding.

Besides, it also entered into a MoU with National Iranian Oil Company and Bangladesh's Spectra International for setting up CNG infrastructure development projects in their countries.

In the deal signed with National Petrochemical Company of Iran, the two companies will perform joint feasibility study for the production of polyolefin products utilising a gas cracker in the South Pars zone in Iran. The companies will jointly assess the possibility for joint investment in a methanol plant in Iran besides jointly putting up petrochemical plants in India.

The state-owned gas utility also entered into a MoU with NCDEX, a national commodity exchange, for developing a spot market for natural gas.

The two companies will form a core team for designing natural gas spot trading contract/market, assessing risk and formulation of tools for hedging the risk and developing mechanism of physical clearing and settlement of natural gas disputes.

Gail also signed a MoU with the National Institute of Oceanography for gas hydrate exploration and exploitation of Indian offshore areas.

As per the MoU, the two sides will set up a working group to finalise specific projects related to exploration of gas hydrates, a Gail release said. The joint working group, which has specific deliverables and timelines, would evaluate projects on gas hydrates, the release said.

The company also roped in Infosys Technologies for jointly developing information technology solutions in the retail gas business.

Under an agreement with the Tripura Industrial Development Corporation and Assam Gas, it will acquire a 29 per cent stake in Tripura Natural Gas. While the Tripura Industrial Development Corporation and Assam Gas will hold 10 per cent each, financial institutions and public will hold the remaining 51 per cent.

As part of the venture, the Northeast company would sell both piped natural gas for domestic use and compressed natural gas for vehicles, a Gail release said.

The company will invest in setting up of the required infrastructure including facilities for compression of natural gas and CNG dispensing stations.

In an MoU with Ergo Exergy Technologies Inc, Canada, Gail will jointly develop underground coal gassification projects in India. Ergo Exergy and GAIL will together identify and estimate reserves of coal for underground gassification at different locations in India.

Ergo would provide technical know-how to India's gas major for commercialising the project, a GAIL release said.