GAIL signs Gas Cooperation Agreement with Government of Puducherry

Gail India Ltd has announced that on December 10, 2007 the Company and Department of Industries and Commerce, Government of Puducherry signed a Gas Cooperation Agreement. The Gas Cooperation Agreement was signed by Shri. B C Tripathi, Director (Marketing) GAIL and Shri. T M Balakrishnan, Secretary, Industries of Commerce, Government of Puducherry, in the presence of His Excellency Lieutenant Governor of Puducherry, Shri. Mukut Mithi, Hon'ble Industry Minister, Shri. Vaithialingam, Hon'ble Transport Minister, Shri. Mh. H F Shahjahan, Chief Secretary, Shri. Rakesh Behari and Dr. U D Choubey, Chairman and Managing Director, GAIL at Raj Bhavan. Senior officials of the State Government and GAIL were also present on the occasion.

As a part of the Agreement, a joint exercise for assessment of the demand potential of Natural Gas and allied products in the Union Territory will be initiated and usage of Natural Gas / CNG / PNG / R-LNG will be promoted.

The various areas for co-operation include pipeline infrastructure for distribution of Natural Gas, Liquid Hydrocarbons (including LPG), promotion of Joint Venture for City Gas Distribution projects for Domestic and transport sectors. The joint action between the two parties envisages setting up of a co-ordination group to study the demand potential of the Union Territory of Puducherry for R-LNG / CNG / PNG to prioritize and take up the specific areas project for implementation for chalking out stage-wise development of infrastructure including for distribution of energy to the door-step of the consumers and to determine the modus-operandi for implementation of the projects through a Joint Venture (JV) of GAIL and Government of Puducherry. For Joint Venture route, the equity participation by GAIL / Department of Industries & Commerce, Government of Puducherry and other institutions / offices shall be decided based on the demand potential and techno-economic study.

GAIL in Puducherry

GAIL started its operations in Puducherry in 1992. Today, GAIL supplies approximately 4 lakh standard cubic metres (SCM) per day of natural gas from Narimanam gas fields to 19 customers in the region through its 60 km long pipeline network. Puducherry Power Corporation is generating about 32.5 MW power using the natural gas supplied by GAIL.

GAIL also supplies approximately 300 MT per month to 25 polymer consumers and about 100 MT per month of Mixed Fuel Oil and Special Boiling Point Solvent.

Puducherry and Karaikal are located very close to the existing gas fields and potential future gas sources in Cauvery Basin. Hence, Puducherry is ideally located to leverage the maximum advantage of natural gas.