GAIL (India) Limited has signed a Memorandum of Understanding (MoU) with Kerala State Industrial Development Corporation Limited (KSIDC), Government of Kerala for Natural Gas Infrastructure and City Gas Distribution in Thiruvananthpuram.

The latest agreement aims to develop the natural gas distribution and city gas infrastructure, to develop the use of eco-friendly fuels, especially Natural Gas/CNG/PNG/R-LNG and to promote a Joint Venture (JV) for domestic, industrial and transport sectors in the state of Kerala.

Both partners stated in an official communiqué that two organizations would initiate a joint exercise for immediate assessment of the demand potential of natural gas and allied products in the State.

Under the Cooperation MoU, GAIL will use its technical and commercial expertise to study various options and to evaluate Energy Demand in the state. GAIL and KSIDC will conduct necessary techno-economic studies based on demand potential, including pipelines and City Gas Distribution Networks (CGD) prepare the preliminary Techno Economic Feasibility Report (TEFR) for infrastructure development.

Apart from this, the MoU also provides for GAIL and Government of Kerala, to identify industrial clusters for distribution of Natural Gas as fuel and to determine modus operandi for setting up of joint ventures by GAIL in Kerala.