GAIL, IOC Strengthen Ties For City Gas Projects

New Delhi: GAIL (India) Ltd and Indian Oil Corporation Ltd have firmed up their partnership for a second joint venture for city gas distribution (CGD) project. Although an umbrella pact between the two entities was inked earlier this year for floating their second joint venture for city gas distribution projects in West Bengal, a formal commitment was reached today. During the signing of the agreement, GAIL had said that the new joint venture will have 22.5 per cent equity holding each by GAIL and Indian Oil, 5 per cent by the State Government or its nominee and 50 per cent by strategic investors/public/financial institutions. The scope of the joint venture includes distribution and marketing of compressed natural gas for vehicles, and piped natural gas for domestic, commercial and industrial purposes. The joint venture company shall source its requirement of LPG from Indian Oil or its affiliates.