Press Releases
[New Delhi, 7th March, 2007]
GAIL - Shell to work on facility sharing
New Delhi, March 7, 2007. GAIL (India) Limited and Shell India have agreed to sharing of GAIL’s pipeline interconnectivity with Hazira terminal for Gas supplies in the country. The two companies have initialed a broad framework of agreement for cooperation which will help evacuation of regassified LNG from Shell’s Hazira terminal for supplies to GAIL’s customers.
Meanwhile, the pipeline tie in at Hazira has also been completed and gas-in into the pipeline is expected to commence shortly.
Under the broad framework of the agreement, the two companies will now work out the modalities for transmission of regassified LNG through GAIL’s pipeline, access of Shell’s regassification facility to GAIL, and long term arrangements with regard to gas supply and distribution.
The framework emphasizes the need for both companies to examine the complementary nature of their facilities and build cooperation around them for mutual benefit. The agreement has the potential to provide gas to GAIL for utilizing its transmission capacity while at the same time assisting Shell to evacuate its R-LNG.
GAIL owns and operates a network of around 6000 km of Natural Gas high pressure trunk pipeline with a capacity to carry around 140 MMSCMD of natural gas across the country. Currently, it transmits approx. 84 MMSCMD of gas through the cross country pipeline network.