Press Releases

GAIL – BPCL strategic alliance for pollution free Kerala and Karnataka

Mumbai, December 22, 2005 Mr. Proshanto Banerjee, Chairman and Managing Director, GAIL and Mr. Ashok Sinha, Chairman and Managing Director, BPCL signed a Memorandum of Understanding (MoU) for the formation of separate Joint Venture Companies for implementation of City Gas Projects in the states of Kerala and Karnataka for supply of Piped Natural Gas (PNG) to Domestic, Commercial and Industrial Consumers and Compressed Natural Gas (CNG) and Auto LPG to automobiles.

This is the first step towards the implementation of City Gas Projects in the states of Kerala and Karnataka. In view of the up coming LNG terminal at Kochi, GAIL has drawn up plans for transportation of R-LNG from the Kochi LNG terminal by laying 900 kms. long Kochi-Kanjirakode-Mangalore/Bangalore Pipeline in the states of Kerala and Karnataka with an investment of about Rs. 2000 Crores. By completion of this pipeline project, City Gas Projects shall be taken up in highly air polluted and major cities enroute of the pipeline in the states of Kerala and Karnataka. R-LNG shall also be supplied to NTPC, Kayamkulam through a 110 Km sub-sea pipeline to be laid with an investment of Rs. 450 Crores.

Speaking on the occasion, Mr. Proshanto Banerjee, CMD GAIL said “joining hands with BPCL for implementation of CNG/City Gas projects in the states of Kerala and Karnataka will strengthen our existing relationship and will go a long way in successful implementation of CNG/City Gas projects.”

Mr. Ashok Sinha, CMD BPCL said “with the proposed LNG terminal at Cochin, the states of Kerala and Karnataka will receive gas from this terminal and we hope to achieve tremendous success in these Joint Venture Gas distribution projects. This will be the forerunner to the future events likely to unfold in the Natural Gas chain, as we see tremendous potential in India for Natural Gas in the coming decade. BPCL is also participating in Exploration projects with an eye on discovery of Natural Gas within the country, which will boost our share of the Natural gas market in India”.

GAIL is also planning to set up 400,000 TPA capacity Petrochemical complex in Kochi with LNG as feed stock with an investment of about Rs. 6,200 Crores.

GAIL and BPCL have already formed two Joint Venture Companies, Indraprastha Gas Limited (IGL) and Central U P Gas Limited (CUGL) for implementation of City Gas Projects in Delhi and Kanpur respectively. Apart from the above, another company between GAIL and BPCL is in the process of formation for introducing Natural Gas in Pune.