NEW DELHI: Under a memorandum of understanding signed Thursday with the National Iranian Oil Company (NIOC) and its subsidiary, the National Iranian Gas Export Company (NIGEC), GAIL will help identify areas of cooperation in the natural gas, compressed natural gas (CNG), and liquefied natural gas (LNG) sectors. "The two companies have agreed to set up joint teams to study and develop project opportunities in identified areas of cooperation. The joint teams will submit quarterly reports and CEOs of both companies will review and approve business initiatives," said GAIL in a statement. GAIL chairman and managing director Proshanto Banerjee said, "The agreement covered a broad range of activities apart from the gas pipelines and has thus opened several avenues of cooperation between the two companies." As per the agreement signed with R. Javadi, managing director of NIOC/NIGEC, both the companies would be working together on residential gas and CNG infrastructure in Iran, India and third countries. This would include transportation of a large volume of natural gas in the form of CNG to remote areas of Iran and India. Javadi said, "The agreement would go a long way in cementing the relationship between the two companies." Banerjee disclosed that a GAIL team would shortly visit Iran to explore the possibility of setting up of joint CNG outlets. Cooperation in exploration and production activities in Iran and India, development of gas-based petrochemical plants in Iran, setting up of gas processing facilities, petrochemicals trading, participation in LNG production in Iran and import of LNG to India are some of the areas identified in the pact. For over a decade Iran has been pressing India to take a decision on the import of gas from Iran via a pipeline that would have to cross Pakistani territory if it is onshore. India has, however, expressed reservations on the pipeline passing through the Pakistan territory citing security reasons and has initiated a study on the offshore deepwater pipeline jointly with Iran. Australia's BHP is studying the onland pipeline while Italy's Snamprogetti has been appointed by Iran and India to undertake the deepwater study. Snamprogetti has almost finished the survey of the costlier undersea pipeline route and is expected to undertake the technical-economic feasibility study after that.
Source: IANS