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Gail signs GCA with Bihar government

World Pipelines,

In a bid 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.

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

GAIL is constructing the 2050 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 four 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.

Joint ventures

GAIL and the Department of Industries will also work towards the promotion of joint ventures 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, a natural gas demand assessment and preliminary techno economic feasibility study will be undertaken for the 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.

Edited from various sources by Ted Monroe

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