ONGC, GAIL ink pact for gas pipeline infra JV

Oil and Natural Gas Corporation (ONGC) and Gas Authority of India (GAIL) have signed a memorandum of understanding (MoU) to form a joint venture which will transport, process and market gas from the Krishna Godavari and Mahanadi fields of ONGC.

The agreement between the two companies also envisages the formation of a joint venture which will distribute gas to households in cities and CNG for vehicles.

"A joint working group will be formed to examine specific opportunities for cooperation in pipeline infrastructure for the KG and Mahandadi basins," R S Sharma, CMD, ONGC, said.

The cooperation with GAIL would help ONGC get quicker access of the discovered gas and also enable us to secure market price for gas to offset higher production cost from deep water, Sharma added.