State-run Gas Authority of India (GAIL) has signed a MoU with Bharat Petroleum Corporation Limited (BPCL), the country's second largest oil marketing company for cooperation in LPG pipelines, city gas projects, exploration and production, transmission and distribution as well as marketing of natural gas.

Under the arrangement, both firms will work together on sourcing natural gas from overseas, as well as developing a LPG pipeline network from existing and new production centers.

Apart from partnering in sourcing of natural gas and liquefied natural gas from overseas, GAIL also has plans to create new infrastructure.

GAIL and BPCL are already partners in Joint Ventures (JVs) for implementation of city gas projects in Delhi and Kanpur.

Recently, BPCL unveiled its plans to foray into the bottled water and direct to home (DTH) services in an attempt to boost its profits. The company is presently seeking the approval of shareholders, through a postal ballot.
The result of the postal ballot for the new line of business would be known by August 22.

The company reported a 91% decline in its Q4 net profit as it was forced to sell fuel below the prevailing market price.