GAIL ties up for Coal Bed Methane projects

Mumbai, Apr 12 (UNI) Gas Authority of India Ltd., GAIL) has signed a memorandum of understanding (MoU) with Arrow Energy, Australia, and Energy Infrastructure Group, Sweden, for cooperation in Coal Bed Methane (CBM) opportunities in India, Australia and other countries of mutual interest, a release today said.

Arrow Energy is an experienced CBM player in Australia holding substantial CBM acreages.

GAIL, which already has an offer from Arrow for joint participation in CBM projects in Eastern Australia, will explore the possibility of participation explorations, appraisal and development CBM blocks of Arrow, the release added.

GAIL is evaluating different mechanisms including setting up a Special Purpose Vehicle (SPV) alongwith Arrow for CBM projects in Australia.

Further, GAIL has shown its interest to participate across the entire chain- from source to market, covering exploration and production, processing and transmission and marketing of CBM alongwith Arrow, to make it as an integrated and sizeable project.

Incidently, Government of India had recently announced bidding for the third round of CBM, where ten blocks were under offer. GAIL intends to participate in the bidding with technically competent CBM partners.

UNI VS PP AW1748