Press Releases
GAIL signs pacts with 3 Chinese companies
GAIL (India) Limited
(Beijing, January 12, 2006)
Beijing, January 12, 2006GAIL (India) Limited today signed three Memoranda of Understanding with three Chinese companies viz. China Petrochemical Corporation (SINOPEC), CNOOC International Limited and the Beijing Gas Group Company Limited (Beijing Gas Group). The MoUs were signed during the visit of the high level Indian delegation to China, led by Mr. Mani Shankar Aiyar, Hon’ble Minister of Petroleum and Natural Gas, Government of India. The GAIL team was headed by Mr. Proshanto Banerjee, Chairman and Managing Director.
GAIL and SINOPEC will cooperate in the oil & gas upstream sector including oil & gas exploration, development and production, within the Peoples Republic of China, India and internationally. Such cooperation will be in various forms such as the transfer of assets, joint acquisitions, joint development of oil & gas projects and the exchange and optimization of assets. The two companies will explore opportunities to cooperate in LNG sector, including LNG trading for Indian and Chinese market, joint investment of LNG receiving and regasification facilities in India and China, participation in the LNG supply chain. The two companies will also explore opportunities to cooperate in natural gas and related sector, such as Feasibility of transporting large volumes of natural gas in the form of CNG to remote areas and from one country to other country by ship; Collaboration in Research & Development (R&D) activities; Exchange of experts and training of personnel on natural gas and its related sector.
Sinopec is a state-owned integrated energy and petrochemical company in the PRC, and is the parent company of a number of subsidiaries involved in oil & gas exploration and production, crude oil refining, petrochemical manufacturing, petroleum and petrochemical products marketing and distribution, as well as petroleum and petrochemical R&D and engineering services. Sinopec’s development target is to build Sinopec as an internationally competitive multinational company with prominent core business, quality assets, diversified equity structure, innovative technologies, advanced management and sound financial practice.
The MoU with CNOOC International Limited is for cooperation in Exploration and Production. GAIL and CNOOC will study, review and jointly bid for exploration blocks in the bidding rounds of exploration blocks and jointly secure “Farm-In” option in already awarded exploration blocks. The two companies will participate in the LNG supply chain for the new projects as well as expansion of existing facilities with an equity interest in the linked gas E&P. The two companies will also consider acquisition opportunities in the field of natural gas and its related sector and collaborate in Research & Development (R&D) activities in the natural gas and related sector.
CNOOC Intl. Limited is a subsidiary company of China National Offshore Oil Corporation (CNOOC), a state owned hydrocarbon company in China. CNOOC Intl. Limited is principally engaged in the exploration, development, production and sale of crude oil, natural gas and other petroleum products outside China. CNOOC Intl. Limited intends to expand its oil and gas exploration and production activities continuously and, where appropriate, to make strategic investments in related natural gas businesses to develop the markets for natural gas. CNOOC Intl. Limited’s strategy is to increase production through the development of undeveloped reserves as well as through proper acquisition of oil and gas asset outside China; and to improve operational efficiencies & lower production costs through the utilization of advanced technology.
The MoU with Beijing Gas Company is for cooperation in Compressed Natural Gas (CNG), Piped Natural Gas (PNG) and related sectors.
GAIL and Beijing Gas Group will identify and evaluate project / business opportunities in Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) sector in India and China. The two companies will carry out Detailed Feasibility Study (DFR) for the identified projects covering optimization of locations for CNG stations, development of most suitable plan for different types of existing as well as new vehicles and development and implementation of direct natural gas based heating and cooling system in India.
Beijing Gas Group is one of the largest natural gas suppliers in China. Beijing Gas Group is involved in Retail Marketing of gas to domestic, commercial, industrial customers as well as CNG for the transport sector in China, particularly in Beijing. Beijing Gas Group intends to expand its retail marketing activities in Beijing. Beijing Gas Group is actively involved in introducing CNG in Beijing City for converting transport vehicles on CNG before the start of Olympics in Beijing in 2008. Beijing Gas Group has got the concession rights to introduce CNG in Municipality area of Beijing.
GAIL, a state owned gas company, is the largest natural gas transmission, distribution, marketing and gas processing company in India and has diversified operations in other integrated energy, Exploration & Production, Telecom, Petrochemical and Retail Marketing of gas to residential, commercial, small industrial sectors as well as CNG for the transport sector in India.