Gail, IOC form JV for Agra-Lucknow gas projects

Gail India and Indian Oil Corporation (IOC) have signed a joint venture agreement for the implementation of city gas projects in Agra and Lucknow.

According to a release issued by Gail to the BSE today, the agreement was signed by Proshanto Banerjee, CMD of the company and Sarthak Behuria, chairman of IOC.

"The ministry of petroleum and natural gas has allocated 0.1 MMSCMD of natural gas for city gas project in Lucknow. The signing of the joint venture agreement has cleared the way for formation of a joint venture company for supply of compressed natural gas (CNG) and piped natural gas (PNG) in the two cities," the release added.

The new joint venture company will commence supply of CNG to automobiles in the cities of Lucknow and Agra by December-end. Initially, the joint venture company will supply natural gas to 1,000 domestic, 20 commercial and 16,600 automobile consumers in Agra, and 1,000 domestic, 62 commercial and 1,950 automobile consumers in Lucknow.

The proposed company will set up seven CNG stations in Agra and two CNG stations in Lucknow in a phased manner, the release added.