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GAIL signs MoUs with three Chinese firms
By agencies
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Friday, 13 January 2006, 20:30 IST
NEW DELHI: GAIL (India) Limited, has signed an MoU with three Chinese companies - China Petrochemical Corporation (SINOPEC), CNOOC International Ltd and the Beijing Gas Group Company Ltd (Beijing Gas Group).
Announcing this, the company stated that these MoUs were signed during the ongoing visit of the high-level Indian delegation to China, led by Mani Shankar Aiyar, Minister for Petroleum and Natural Gas along with Proshanto Banerjee, Chairman and Managing Director headed the GAIL team.
GAIL and SINOPEC would cooperate in the oil and gas upstream sector, including oil and gas exploration, development and production, within the People's Republic of China, India and third countries. Such cooperation would be in various forms such as the transfer of assets, joint acquisitions, joint development of oil and gas projects and the exchange and optimization of assets, the company stated.
Besides, both the companies would also explore opportunities to co-operate in liquefied natural gas (LNG) sector, including LNG trading for Indian and Chinese market, joint investment of LNG receiving and re-gasification facilities in India and China, and participation in the LNG supply chain. Exploring opportunities to co-operate in natural gas and related sectors, such as feasibility of transporting large volumes of natural gas in the form of compressed natural gas (CNG) to remote areas and from one country to other country by ship, collaboration in research and development (R&D) activities, and exchange of experts and training of personnel on natural gas and its related sectors are also included in the agreement.
The second MoU, inked with CNOOC International Ltd, was for cooperation in exploration and production activities. GAIL and CNOOC would study, review and jointly bid for exploration blocks in the bidding rounds and jointly secure "farm-in" option in already awarded exploration blocks.
The two companies would participate in the LNG supply chain for the new projects as well as expansion of existing facilities with an equity interest in the linked gas E&P. The statement said the two companies would also consider acquisition opportunities in the field of natural gas and its related sectors and collaborate in R&D activities in natural gas and related sectors.
And the third MoU was signed with Beijing Gas Company for co-operation in CNG, Piped Natural Gas (PNG) and related sectors. GAIL and Beijing Gas Group would identify and evaluate project/business opportunities in PNG and CNG sector in India and China.
The two companies would also carry out detailed feasibility study (DFR) for the identified projects covering optimization of locations for CNG stations, development of most suitable plan for different types of existing as well as new vehicles and development and implementation of direct natural gas-based heating and cooling system in India.