New Delhi, Jul 24 (UNI) The country's largest flagship natural gas company, Gas Authority of India Ltd (GAIL) today said it has signed a Memorandum of Understanding (MoU) with Bharat Petroleum Corporation Ltd (BPCL) for cooperation in the areas of natural gas-transmission and distribution, LPG Pipeline, and City Gas Projects.
It also entails joint effort in Exploration and Production, use and marketing of Naphtha, Infrastructure Projects and Technology and Knowledge Sharing between the two companies.
The MoU was signed by GAIL Director (Business Development), A K Purwaha, and BPCL Director (Marketing), S Radhakrishnan, in presence of GAIL Chairman and Managing Director,Dr U D Choubey, and BPCL CMD, Ashok Sinha.
''We have been working without any formal agreement and this MoU would give strength to this arrangement. IGL, is an outstanding example of the successful cooperation between GAIL and BPCL. Even in E&P, we have a common outlook while for city gas there could even be one JV/ holding company instead of several separate JV companies,'' Mr Choubey said.
GAIL and BPCL have agreed to cooperate and examine various options available for transmission/distribution of BPCL's gas from different sources on ownership / contract carriage / common carrier basis through the existing pipeline network of GAIL and new infrastructure being created and planned by GAIL.
Both the companies have also agreed to cooperate with each other in sourcing of Natural Gas/ LNG from overseas.
''This was a formalisation of the partnership framework where the two organisations have already been working together effectively. There are various areas which are of common interest and we should work to each others strengths,'' Chairman and Managing Director, Bharat Petroleum Corporation Limited, Ashok Sinha said.
GAIL and BPCL are already partners in Joint Ventures (JVs) for implementation of city gas projects in Delhi and Kanpur. Further, incorporation of JV between GAIL and BPCL for implementing city gas projects in the important cities of Kerala and Karnataka is being taken up expeditiously.
UNI PDT MP RN2029