Seven MoUs signed to boost oil, gas industry prospects

The government of Gujarat today signed seven memorandum of understandings (MoUs) with companies in the fields of oil and gas at the Vibrant Gujarat - Global Investors' Summit in Ahmedabad.

The state government expects these tie-ups to provide the much-required boost to the oil and gas sector even as two LNG terminals are coming up at Dahej and Hazira in Gujarat.

State government run companies Gujarat State Petroleum Corporation (GSPC) has signed three contracts, the Gujarat Industrial Development Corporation (GIDC) signed two MoUs and the Gujarat State Energy Corporation Ltd (GSECL) and Gujarat Power Corporation Ltd (GPCL) have signed one agreement each.

In addition, the government of Gujarat also signed a Rs 2,500 crore MoU with IFFCO.

The Gujarat Narmada Valley Fertiliser Company (GNFC), which has signed a Rs 500 crore MoU with ONGC, will co-operate with the oil major in the exploration and development of coal bed methane (CBM), research and development of underground coal gassification, pipeline network for transportation of oil and gas and marketing of hydrocarbon gases produced from CBM and UCG.

GSPC will also undertake pipeline work for ONGC. The duration of the MoU will be 10 years from the date of signing.

The Rs 100 crore MoU with STAEG encotec GmbH (SEG) is for setting up of the Gujarat Energy Research and Management Institute (GERMI) at Ahmedabad.

GERMI is proposed to be a world class institution which will be developed into a global centre for energy studies and related activities.

The institute will have linkages with German universities for collaborative post-graduate programmes in energy management.

It will also serve as a resource centre for energy professional and policy makers.

It is expected that GERMI will be the first institute of its kind in the energy sector in India and will provide human resources to manage the economy of Gujarat.

In the Rs 500 crore MoU of GSPC and other NELP IV partners, the corporation will pump in Rs 300 crore, Hindustan Petroleum Corporation will provide Rs 100 crore and Jubilant Enpo Ltd and Geo Global Resources Ltd will jointly spend Rs 100 crore.

GSPC will collaborate with HPCL JEL and the Canada-based GGR for accelerated exploration activities in various basins of India.

To begin with, GSPC will bid for exploration blocks offered under NELP-IV.

JEL, with a $350 million turnover, is headed by Shyam Bhartia and Hari Bhartia and has interest in pharmaceutical, specialty chemicals, oil and gas and food services.

GGR, a Canadian company, is headed by J P Roy and has been involved in exploration activities in India.

The GIDC also entered into a MoU with Shell Group for the Hazira special economic zone (SEZ). Hazira Port of the Shell Group has already set up a LNG jetty and the port at Hazira and is to establish a solid cargo port as well.

GIDC and HPCL have signed a MoU for the implementation of a feasibility study for Hazira SEZ.

HPCL will serve as the infrastructure provider and the decision to integrate the SEZ and port development will be taken after the study is completed.

GIDC chairman Hasmukh Adhia said through the MoU signed with ONGC, ONGC has agreed to be an equity partner of GIDC to an extent of 26 per cent to be invested in by new company called Dahej SEZ Ltd.

This company will be responsible for the development of necessary infrastructure for development of Dahej SEZ.

According to the MoU, GIDC and ONGC will work together to look for a third-party developer, who has experience in such project. This party could also be offered a major share in the proposed Dahej SEZ Ltd.

The MoU, worth Rs 4,000 crore, also covers cracking of C-2, which will be located at Dahej SEZ.

Another MoU, signed between GSECL and GPCL, worth Rs 350 crore, is aimed at setting up a 107 mw gas-based power plant and the last MoU, worth Rs 2,500 crore, was signed between the Gujarat government and IFFCO, where the government will provide assistance for setting up a fertiliser plant at Kalol and also setting up of a phosphoric acid plant at Kutch.