India's GAIL, BPCL in gas, exploration ventures

Gas Authority of India limited (GAIL) and Bharat Petroleum Corp Ltd (BPCL) will jointly work in the field of transmission and distribution of natural gas, LPG pipelines, city gas, exploration and production. The memorandum of understanding was signed by GAIL Director (Business and Development) A K Purwaha and BPCL Director (Marketing) S Radhakrishnan on Thursday.

State run GAIL said that the MoU will also cover marketing of naphtha infrastructure projects and technology. The financial detail of deal is not provided by the company. GAIL and BPCL are already working on these areas. They are now committed completing pending task and setting new infrastructure. BPCL is a stake holder in Petronet LNG Ltd. Petronet LNG Ltd is operating the largest liquefied natural gas terminal at Dahej and working on a new project in Kochi.

Both firms will also work together on natural gas sourcing from overseas and develop LPG pipelines centers. GAIL and BPCL are already working on gas projects of CNG in Delhi and Kanpur. They will now focus on southern states of Kerala and Karnataka.