The Hindu Business Line : GAIL, TIDCO sign co-operation pact

GAIL (India) Ltd and Tamil Nadu Industrial Development Corporation Ltd (TIDCO) have signed a gas cooperation agreement to assess the demand for gas and the support infrastructure required for it in the State.

Addressing a press conference, Dr U.D. Choubey, Chairman and Managing Director, GAIL, said that the agreement provides for a joint working group of both partners to assess the medium and long-term demand potential for natural gas, assess the infrastructure that would be needed, identify supply sources, and optical fibre cable (OFC) requirements in the pipeline routes.

Once the study is done and decision taken to implement, GAIL would handle the establishment of physical infrastructure with TIDCO as a facilitating agency. Over the next six months the study would look at the demand in industrial, residential, transport and commercial sectors and prepare a techno-economic feasibility report.

Mr S. Ramasundaram, Chairman and Managing Director, TIDCO, said that the non-exclusive agreement with GAIL takes forward the State Government’s announcement last year to implement the gas exploration and distribution project. Against the backdrop of the steep increase in oil prices, gas is a viable option as a fuel across various sectors.

PCPIR

Also, GAIL has evinced interest in the Petroleum, Chemical and Petrochemical Investment Region (PCPIR) the State Government plans to create in Cuddalore and Nagapattinam. The State Government has forwarded a proposal to the Centre, which is promoting this concept to encourage investments in petrochemical and related industries, to recognise Cuddalore-Nagapattinam PCPIR, Mr Ramasundaram said.

Gas Network

On the gas supply and potential, Dr Choubey said that GAIL has a 200-km network of pipeline in Tamil Nadu and supplies 30 lakh standard cubic metres of gas a day (scmd) from five zones – Narimanam, Kuttalam, Ramnad, Kovilkalappal and Bhuvanagiri, an area expected to have a huge gas potential – to 31 industrial units.

The gas fuels over 600 MW of power generation, production of 5 lakh cylinders of LPG annually by CPCL and contributes about Rs 13 crore as commercial tax income to the State.

GAIL is authorised to lay the Kochi-Bangalore pipeline through Tamil Nadu. This pipeline would create the potential to supply gas to industrial units in Coimbatore, Erode, Namakkal, Salem, Krishnagiri and Dharmapuri districts.

GAIL has participatory interest in eight oil and gas blocks in Cauvery basin. With the potential identified in Nagapattinam, Karaikal and Puducherry, GAIL hopes to create a CNG corridor in Tamil Nadu and start supplies to Chennai also.

GAIL Gas Ltd, a subsidiary of GAIL, would handle the supply of CNG for transport requirements just as city gas, addresses the residential supply, Dr Choubey said.

OFC

GAIL has major interests in OFC infrastructure.

More Stories on : Alliances & Joint Ventures | GAIL (India) Ltd | Tamil Nadu

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