In order to assess medium and long term demand of gas potential of the state, Gas Authority of India (GAIL) announced that it has entered into a gas co-operation contract with Tamil Nadu Industrial Development Corporation (TIDCO).

While addressing a press conference, Dr. U D Choubey, Chairman and Managing Director, GAIL, stated that the recent deal provides for a joint working group of both partners in order to evaluate the medium as well as long-term demand of gas in industrial, commercial, transport, residential segments of Tamil Nadu, gas pipelines and other networks needed for gas marketing, sources for assuring nonstop supply at competitive prices, optical fibre cable network in potential gas pipelines.

“We expect to come out with a comprehensive study in the next six months and accordingly go ahead with this project,” Dr. Choubey added.

While Tidco will provide all the necessary data/informations, which include relating to gas demand in the state, broaden its cooperation on best effort basis to developers of gas pipeline infrastructure, related facilities and optic fibre cable networks and other back-up supports. Based on this, GAIL will decide the exact natural gas supply alternatives to the state.

According to Choubey, the company has identified gas sources in places including Nagapattinam. Karaikkal, Puduchery, Kuttalam, Bhuvanagiri among other regios to build gas pipeline and the same will be extended to Chennai.

The company has formed a wholly-owned overseas subsidiary company GAIL (Global Singapore) with the aim of actively sourcing overseas business. It holds stake in China Gas Holding to discover opportunities in the CNG segment in mainland China.

Shares of the company, on Friday (June 6), declined 3.5% to settle at Rs 384.35 on the Bombay Stock Exchange (BSE). The total volume of shares traded was 234,901.