GAIL for CNG projects in Bangladesh

New Delhi, September 19, 2005 GAIL will offer consultancy services to Petrobangla (Bangladesh Oil, Gas and Minerals Corporation) for conversion of existing diesel driven vehicles in Bangladesh to CNG. GAIL also proposes to set up minimum 30 – 50 CNG stations in major cities and along three main highways, which are Dhaka – Sylhet, Dhaka – chittagaon and Dhaka – Bodra highways. GAIL has also expressed its interest for equity participation in the proposed CNG stations in Bangladesh.

These issues were discussed at the meetings between GAIL and Petrobangla, a state owned hydrocarbon company in Bangladesh, held during the recent visit of Shri Proshanto Banerjee, Chairman and Managing Director, GAIL to Dhaka. Shri Banerjee accompanied the Hon’ble Minister of Petroleum & Natural Gas and Panchayati Raj who visited Bangladesh recently to hold discussions on Myanmar - Bangladesh - India Gas Pipeline.

Appreciating the concern expressed by Petrobangla to convert the existing diesel vehicles to CNG, GAIL has offered its services for conversion which would be done in association with the Indian vehicle manufacturers such as Tata Group and Ashok Leyland, with whom GAIL already has cooperation agreements in various areas related to gas sector including CNG in India as well as abroad.

GAIL has also proposed to set up 30 – 50 CNG stations in major cities and along the -highways in Bangladesh alongwith Rupantarito Pakritik Gas Company Limited (RPGCL), a subsidiary of Petrobangla involved in LPG/CNG marketing in Bangladesh. GAIL has already signed an MoU with Business Development Corporation Limited, a private sector company in Bangladesh, which will be one of the partners in CNG joint venture projects in Bangladesh. GAIL and RPGCL will enter into a cooperation agreement for joint participation in the development of CNG facilities in Bangladesh. GAIL shared its experience in the use of CNG in Railway locomotives in India.

GAIL has a successful track record of implementing CNG projects in Delhi and Mumbai. GAIL is also implementing CNG projects in cities of Andhra Pradesh, Trupira as well as Kanpur, Lucknow, Agra and Bareilly. GAIL plans to set up city gas projects in 28 cities in the country under the project Blue Sky. GAIL has established its CNG and City Gas presence in Egypt through equity participation in Fayum Gas, Shell CNG and Natgas, Egypt and has acquired stake in China Gas Holding for CNG opportunities in mainland China. GAIL would soon have presence in three cities of Hunani, Wu Hu and Yi Chang.

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