RIL - GAIL Sign MoU - To Set Up Petrochemical Plants globally

Reliance Industries Ltd has announced that Reliance Industries Ltd (RIL) and GAIL (India) Ltd on December 04, 2007, signed a Memorandum of Understanding (MoU) for Joint Co-operation in Petrochemicals. The MoU was signed in Mumbai by Shri. A K Purwaha, Director (Business Development), GAIL and Shri. Nikhil Meswani, Executive Director, RIL in the presence of Dr. U D Choubey, Chairman and Managing Director, GAIL and Shri. Mukesh D Ambani, Chairman and Managing Director, RIL. The Directors and senior officials from both the Companies were also present on the occasion.

Under the MoU, GAIL and RIL will explore opportunities for setting up petrochemical complexes outside of India in feedstock rich countries. Identified opportunities will be examined by a Working Group, consisting of representatives from both the Companies. GAIL and RIL will setup a Special Purpose Vehicle (SPV) for setting up petrochemical complexes abroad.

The Working Group is examining such opportunities in Middle East, Russia and FSU countries.

In addition, the two Companies will also examine the possibilities of mutual co-operation in the domestic market.

This MoU signed on December 04, 2007 is the beginning in the area of petrochemical between GAIL and RIL. A Memorandum of Understanding (MoU) was also signed between the two Companies on March 15, 2007 for co-operation in identified areas in the natural gas sector including Natural Gas pipeline, City Gas distribution, Coal Bed Methane, Exploration & Production and Operations & Maintenance services.

Speaking on the occasion, Mr. Mukesh D Ambani, Chairman and Managing Director, RIL echoed the feelings of GAIL CMD on the need to work together. He said, "GAIL and RIL are India's leading Companies in the energy and infrastructure sector. The decision will enable us to look for opportunities globally on a competitive scale for the petrochemical business which will further strengthen India's position on the global map."