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GAIL signs gas cooperation agreement with government of Bihar



Updated On - Thursday, 07 November 2013

23 October 2013

In a landmark development to expand the natural gas footprint in eastern India, GAIL (India) Limited today signed a Gas Cooperation Agreement (GCA) for Natural Gas Infrastructure and City Gas Distribution with the Department of Industries, Government of Bihar.

The GCA was signed here in the presence of Shri Nitish Kumar, Hon'ble Chief Minister of Bihar, Dr. Renu Kumari Kushwaha, Hon'ble Minister for Industries, Shri A. K. Sinha, Chief Secretary, Shri B. C. Tripathi, Chairman and Managing Director, GAIL, Shri Naveen Verma, Principal Secretary, Industries, Shri Prabhat Singh Director (Marketing), GAIL, and other senior officials from Department of Industries and GAIL (India) Limited.

Under the provisions of the GCA, GAIL and the Bihar Government will evaluate the feasibility for cooperation for the development of the use of eco-friendly fuel, especially natural gas, in the state as well as development of natural gas distribution and city gas infrastructure in identified urban areas and cities after obtaining due authorization from the Petroleum and Natural Gas Regulatory Board (PNGRB).

GAIL is constructing the 2,050 km. Haldia – Jagdishpur pipeline from transmission and distribution of natural gas, of which about 621 km. will pass through 14 districts of Bihar. The mainline of the Haldia Jagdishpur will cover 04 districts of Bihar such as Kaimur, Rohtas, Aurangabad, Gaya and 10 districts for the spur lines. GAIL will explore the possibility of City Gas Distribution in major towns of Bihar along this pipeline route.

GAIL and Industries Department, Bihar will also work towards promotion of joint venture for City Gas Distribution projects for domestic, commercial, industrial and transport sectors with the participation of GAIL or its wholly owned subsidiary GAIL Gas Limited and concerned departments of the Bihar Government, other state agencies or private players.

As per the GCA, Natural Gas Demand Assessment and Preliminary Techno Economic Feasibility Study will be undertaken for evaluation of medium and long term gas demand potential for the state for industrial, commercial, transport and residential sectors; assessment of pipeline infrastructure and associated facilities required for supply of natural gas including optical fibre network; and evaluation of natural gas supply options to Bihar on a long-term and competitive basis.

Published by: The Economic Times

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