Press Releases
GAIL for Coal Seam Gas project in Australia
GAIL (India) Limited
(New Delhi, February 19, 2006.)
New Delhi, February 19, 2006.GAIL (India) Limited is examining an opportunity for construction and operation of Gas Processing Facility and associated Pipeline system for transportation and marketing of Coal Seam Gas/Coal Bed Methane (CBM) to customers in Queensland, Eastern Australia.
Arrow Energy, Australia has contacted GAIL for setting up a Special Purpose Vehicle (SPV) to own and operate a Gas Processing Facility, Pipeline system for transportation of Coal Seam Gas and Trading in Queensland, Eastern Australia. Arrow Energy will be supplying the gas from its block located in Queensland, wherein the SPV transmit and market the gas.
Arrow Energy, listed on the Australian Stock Exchange, is involved in exploration, appraisal and development of Coal Seam Gas Projects in Queensland and North West Shelf of Australia. Arrow Energy has proven experience in finding, accessing, drilling and accumulating coal seam gas and bringing gas market to sustainable long term contract basis with customers in Australia.
GAIL is also looking at the option of forming a Special Purpose Vehicle (SPV) for this purpose along with Arrow Energy as well as other interested Parties. GAIL may hold major stake in the SPV with the management and operational control.
GAIL has expressed its initial interest to participate across the entire chain including the exploration of Coal Seam Gas blocks. Arrow has Energy agreed to examine GAIL’s interest and detailed discussion between GAIL and Arrow is scheduled shortly.
Australia holds around 9% of world’s proven coal reserves and accounts for 7% of world’s coal production. All major coal basins of Australia are located in the eastern side of the Country. GAIL views that this will provide an opportunity to acquire the CBM technology and adopt the technology in India in big way, besides opportunity to grow in Eastern Australia on long term basis. GAIL and Arrow may also consider joint participation in the third CBM round in India expected to be announced shortly.