RIL, GAIL to ink pact on synergy
NEW DELHI, Feb. 21 (UPI) — State-run Gas Authority of India Ltd. and Reliance Industries Ltd. are looking to cooperate on shared areas.
“India’s two energy majors GAIL and Reliance are in talks to enter into agreement to work jointly in synergy areas such as gas pipeline projects, city gas distribution sectors and coal bed methane,” said a GAIL spokesman.
He said such cooperation would be beneficial to both as GAIL is the largest gas pipeline company whereas RIL has emerged as the largest producer of gas.
The two giants are planning to set up a joint venture company for transporting gas from all their sources.
The spokesman said the new joint venture would be different from GAIL’s current city gas distribution ventures. The government-controlled gas major has signed several agreements with at least 12 oil marketing companies.
He said the officials of both companies are talking to determine their equity stake. The new joint venture may buy a stake in upcoming Kakinada pipeline project, The Economic Times newspaper reported Wednesday.
