The Hindu Business Line : GAIL may join hands with Reliance for overseas petrochem projects

GAIL (India) Ltd is likely to join forces with Reliance Industries Ltd (RIL) for setting up petrochemical projects abroad. Sources said that the board of GAIL, which met last month, has allowed the company to continue looking at strategic options for expanding its petrochemicals business.

Though the sources declined to elaborate on the proposed tie-up with RIL, indications are that the company is considering inking a memorandum of understanding (MoU) with the private sector major for the purpose. As per the proposed agreement, the two will explore opportunities to set up petrochemical projects in places which have the feedstock - gas-rich nations. These countries include Russia, some of the former Soviet Union states and West Asia. The two entities may jointly float special purpose vehicles having equal stakes.

GAIL has been looking at expanding its base in petrochemicals business, for which it is open to joining hands with other players, the sources told Business Line.

An MoU between RIL and the state-owned gas transmission and marketing major already exists for cooperation in the gas sector. The areas of joint cooperation identified include natural gas pipeline transmission and marketing, CBM gas opportunities, city and local gas distribution, operations and maintenance services, exploration and production, and technology and knowledge-sharing.

Under the MoU, GAIL and RIL are discussing co-operation in the development of a gas grid and examining opportunities that may be available for optimal utilisation, sharing and inter-connectivity of their respective, existing and planned transmission and distribution networks. The core teams of the two entities are already in discussions on pipeline projects, particularly interconnectivity in Andhra Pradesh, Maharashtra and Gujarat. Technical parameters are also under discussion.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Infosys BPO files countersuit against US co

PM assures availability of funds for fertiliser subsidy

Rupee down; IT stocks drive Sensex up 375

GAIL may join hands with Reliance for overseas petrochem projects

Tata Power all set for nuclear power foray

Allahabad HC stays UP move to privatise sugar mills

Relaunch to give Vimal a makeover

Coming of age in a multicore era

Mixed views on impact of tighter ECB norms

Every seventh stock hits upper circuit on BSE

Acquisition talk props up Sonata Soft

CIBIL has 90 m borrower accounts in database

Spectrum crunch hits Idea plans

Cos come under I-T scanner on payments to consultants