GAIL commisions IT Disaster Recovery Centre

Gail India Ltd has announced that the Company on March 14, 2008 formally commissioned an IT Disaster Recovery Centre at Jaipur to ensure uninterrupted business operations in case of any eventuality.

The Disaster Recovery Centre at Jaipur will help GAIL mitigate the risks of potential disasters to its IT infrastructure whether from fire, earthquake, prolonged power outage, war, riot, flood, bombing, terrorist attacks, cyber attacks etc. which in turn will help GAIL to continue uninterrupted services and supply to its customers.

The Centre will help GAIL to achieve the zero data loss and restoration of business within 2-3 hours time in case of any eventuality. The three way Disaster Recovery Centre has been set up by GAIL with state-of-the-art infrastructure at a cost of Rs 15 crores.

Speaking on the occasion, Dr. U D Choubey, GAIL emphasized the importance of business continuity to retain the confidence of stakeholders in today's business environment and described the Disaster recovery setup at Jaipur as a major risk management initiative taken by GAIL. He further said that GAIL proposes to take the Disaster Recovery Plan beyond IT and ERP to include business operations too and to develop an organization-wide Business Continuity Strategy. He also emphasized the need for proper identification, planning and implementation to ensure not only Business Survival but also long term success particularly when GAIL is planning to double its pipeline infrastructure and aiming for almost a three fold increase in revenues from the current Rs 16,047 crore to Rs 50,000 crore by 2011-12 and expanding its major spheres of pipelines, petrochemicals and distribution business.

GAIL has set up the Data Recovery Centre at Jaipur considering factors such as different seismic zones (vis-a-vis existing Datacentre at Noida), proximity and connectivity to Delhi, probability of dangers such as flood, tsunami etc. and robust connectivity with GAIL's own telecom bandwidth. The Centre is equipped with all infrastructure required for such systems. The design engineering for the Data Recovery Centre has been carried out in-house and the job was executed by Wipro.

Initially, the Data Recovery for business critical SAP R/3 Systems have been covered. Subsequently, all critical applications like GMS, E-mail and Customer Relationship Management / SRM would be covered.

GAIL implemented SAP-ERP in 2005 to cover business functions like Marketing and Sales, Collections and Payments, Finance Operations, Material Management, Human Resource etc. The entire ERP infrastructure is hosted at GAIL's state-of-the-art datacenter at Noida. A low capacity standby ERP server is placed at a separate location to cater to the requirement for 200 critical users, in case of any contingency at the Primary datacenter at Noida.

GAIL - Dabhol- Bangalore pipeline

Gail India Ltd has informed that the Board of Directors of the Company at its meeting held on January 15, 2008 gave in-principle approval for laying of the Dabhol-Bangalore gas pipeline. At its Board and Strategy review meeting held in Bangalore today, the Company management gave the go ahead for further fine bound action and finalization of the project execution plans.

Depending on the source and customer tie up, the 30", 730 km Dabhol-Bangalore gas pipeline shall be designed to carry 16 MMSCD of gas and will need an investment of approximately Rs 2500 crore. The project shall be appraised / updated in respect of investment, customers identification, routing of the pipeline and freezing the design parameters before final investment approval by the GAIL Board.

The route of the proposed pipeline is from R-LNG Terminal of Ratnagiri Gas and Power Pvt. Ltd (RGPPL) at Dabhol in Maharashtra up to Bangalore. The pipeline will pass through Ratnagiri and Kolhapur districts of Maharashtra; and Belgaum, Dharwad, Haven, Davangere, Chitradurga, Tumkur and Bangalore districts of Karnataka. With this pipeline, natural gas from RGPPL's R-LNG Terminal can be supplied to industrial clusters in the state of Maharashtra and Karnataka.

The Dabhol - Bangalore pipeline is among the 5 new pipelines for which GAIL has already received authorization in the first quarter of 2007. The other pipelines for which approval has been granted are: (1) Dadri - Bawana - Nangal pipeline, (2) Chainsa - Gurgaon - Jhajjhar - Hissan pipeline, (3) Jagdishpur - Haldia pipeline, and (4) Kochi - Kanjirkkod - Bangalore / Mangalore pipeline.

In addition to these, GAIL will be laying 3 pipelines (within the existing ROU) to augment the capacities of Dahej - Vijaipur pipeline, Vijaipun - Dadri pipeline, Vijaipur - Auraiya - Jagdishpur pipeline. The carrying capacity of these three pipelines shall be 74 MMSCMD. The total length of the new pipelines will be around 5500 km and the estimated investment on these would be nearly Rs 20,000 crore. When all these pipelines are commissioned by 2011-12, the total length of GAIL's pipelines would be over 12,000 km and the capacity is expected to increase from 148 MMSCMD at present to around 300 MMSCMD.

These 8 new pipelines to be laid by GAIL will form part of an integrated national gas grid in the country. These pipelines will also enable GAIL to maintain its dominant position in the gas transmission and distribution business. The integrated gas pipeline network will also enable development of city gas distribution projects in the country by catering to a large number of cities and towns falling in the catchment area of the existing and future pipeline networks and GAIL shall have a distinct advantage and edge over other players.

GAIL strategy meeting was attended by Dr. U D Choubey, Chairman & Managing Director, GAIL, Shri S. Sundareshan, Additional Secretary, Ministry of Petroleum and Natural Gas, Dr. A K Kundra, Independent Director on GAIL Board, Shri. D N Raju, Joint Secretary, Ministry of Petroleum and Natural Gas, all the functional Directors of GAIL - Shri. M R Hingnikar, Director (HR), Shri. R K Goel, Director (Finance), Shri. Santosh Kumar, Director (Projects), Shri. A K Purwaha, Director (Business Development), Shri. B C Tripathi, Director (Marketing), Shri. Arvind Jadhav, Chief Vigilance Officer, of GAIL, and other senior officers of the Company.

Gail and Coal India to setup gasification project

Gail India Ltd has informed that the Company and Coal India Ltd (CIL) have entered into an MOU for setting up of a surface coal gasification project for production of synthesis gas for fertilizer production. The MoU was signed here on January 10, 2008 by Mr. A K Purwaha, Director (Business Development), GAIL and Mr. N C Jha, Director (Technical), CIL in presence of Dr. U D Choubey, Chairman and Managing Director, GAIL and Mr. Partha S Bhattacharyya, Chairman, CIL.

As part of MOU, GAIL and CIL will jointly develop a surface Coal Gasification Project for production of synthesis gas to be used as feedstock for fertilizer production. The project would entail an investment of around Rs 2400 crore for setting up the coal gasification plant. The two Companies will form a joint Working Group to evaluate detailed feasibility report prepared by GAIL to evaluate the viability of the project in terms of techno-economic feasibility for the project.

Speaking on the occasion, Dr. U D Choubey, CMD, GAIL described the MoU as highly synergistic. He said this MOU signing follows close on the heels of the recent signing of the MOU with RCF for the use of this gas and said he was confident that the commitment of the two Companies would undoubtedly see the project through.

GAIL had earlier carried out a study by Udhe India for examining the potential of the project and it is estimated that the project will consume around 5000 tonnes per day of coal to produce 7.76 MMSCMD of synthesis gas (equivalent to 3000 tonnes per day of ammonia) for production of 3500 tonnes per day of Urea. GAIL will focus on the production and marketing of synthesis gas which will be in line with its core function of gas handling.

GAIL, RCF enter JV for coal gasification project

Gail India Ltd has informed that the Company and Rashtriya Chemicals and Fertilizers Ltd (RCF) have entered into an MOU for setting up of a coal gasification project by the Company and utilization of the coal gas produced for setting up a fertilizer plant by RCF at Talcher, Orissa. The MoU was signed here on December 28, 2007 by Mr. A K Purwaha, Director (Business Development), of the Company and Mr. H S Karangle, Director (Technical), RCF in presence of Dr. U D Choubey, CMD, of the Company and Shri U S Jha, CMD, RCF.

As part of MOU, the Company will undertake the Techno-economic study for setting up a Commercial Coal Gasification Plant for production of Synthesis Gas, and RCF will carry out the techno-economic study for setting up a commercial plant to produce fertilizer by utilizing the synthesis gas from the proposed Coal Gasification Plant.

Speaking on the occasion, Dr. U D Choubey, CMD of the Company, referred to the critical role of fertilizers in a predominantly agricultural country like ours and the imperative of providing this input to the farmers at a reasonable price. Gas, he said, had always been a preferred feedstock for fertilizers but there is a large demand supply gap of natural gas and therefore considerable efforts are afoot to look for alternate sources of energy. Surface coal gasification, he said, provides a promising alternate source of gas which can also meet the feedstock requirement of the fertilizer industry. This was recognized by both RCF and the Company and he was confident that the project will be a success.

The project would entail an investment of around Rs 2400 crore for setting up the coal gasification plant.

The Company had earlier commissioned a study by Udhe India for examining the potential of the project and it is estimated that the project will help produce 7.76 MMSCMD of synthesis gas (equivalent to 3000 tonnes per day of ammonia) and 3500 tonnes per day of Urea. The Company will focus on the production and marketing of synthesis gas which will be in line with its core function of gas handling.

Both the Companies will also jointly evaluate the potential of Coal Gasification for fertilizer industry and provide assistance to each other for successful implementation of respective projects.

GAIL and Oil India MoU for future operations

Gail India Ltd has announced that the Company and OIL India Ltd, on December 27, 2007 has signed a Memorandum of Understanding (M0U) for joint cooperation in various business areas. The agreement was signed by Dr. U D Choubey, CMD, of the Company and Shri M R Pasrija, CMD, OIL. Others present on the occasion included Shri Santosh Kumar, Director (Projects), Shri A K Purwaha, Director (Business Development), Shri B C Tripathi, Director (Marketing) and Shri Arvind Jadhav, Chief Vigilance Officer from the Company, Shri T K Ananth Kumar, Director (Finance) and Shri B N Talukdar, Director (Exploration & Development) from OIL, Shri Manu Srivastava, Director, Ministry of Petroleum & Natural Gas along with other senior officials from both the companies.

Various areas of mutual interests identified in the MoU include Exploration and Production, Natural gas Marketing and Transmission, City Gas Distribution, Coal Bed Methane, Petrochemicals and Technology and Knowledge Sharing. Both the companies will explore opportunities for cooperation in greater details so that respective resources could be pooled on the basis of mutuality and reciprocity.

As part of the agreement, the two companies will jointly participate in the potential blocks, mainly onshore and offshore blocks in the forthcoming NELP VII bidding round. The two Companies will also examine the possibility of joint bidding for overseas exploration blocks and also securing farm-in options in already awarded exploration blocks in India and abroad.

Considering the likely discovery of gas by OIL from its E&P blocks and the Company's vast geographical spread of its existing / planned gas transmission networks and its experience in marketing of gas, the two companies will explore cooperation in transportation and marketing of OIL's share of gas from new discoveries through the Company's existing pipeline network and new infrastructure being created / planned by the Company. Further, the Company and OIL may consider examining joint participation in gas pipeline projects abroad including transnational gas pipeline projects.

The two companies will also examine joint implementation of city gas distribution projects in major cities of Assam and in other states through Joint Venture route along with interested third parties.

Similarly, the Company and OIL will discuss cooperation in CBM opportunities, petrochemicals sector in India and abroad including joint participation in the next CBM bidding round in India.

The Company & OIL are already partners in the Brahamaputra Cracker and Polymer Ltd (BCPL) at Dibrugarh in Assam, where the Company holds 70% equity and OIL 10%. The two companies have considerable technology and knowledge bank developed over the years and they will cooperate with each other in sharing technology and knowledge wherever feasible in mutual interest through training of personnel in areas such as E&P, pipeline and City gas / CNG operations.

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.

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."