Reliance Industries has now teamed up with Gail (India) to jointly undertake projects in gas pipeline infrastructure, marketing of gas, and E&P in shallow, deepwater and CBM blocks.

It is learnt that GAIL has signed a comprehensive two-year memorandum of understanding (MoU) for the project. RIL has also been talking to Indian Oil Corporation for setting up a joint venture for city gas distribution projects in various states but is yet to reach a formal agreement.

The memorandum of understanding entails co-operation between the two in the purchase, sale, swap and marketing of gas and import of gas through transnational pipelines. Sharing of pipeline capacity in Andhra Pradesh, Maharashtra and Gujarat on mutually agreed terms is also included in the agreement between the two companies.

GAIL has been setting up city gas joint ventures along with other partners to promote piped gas supply to domestic and commercial sectors as well as CNG supply to vehicles. It is already implementing these projects in Delhi and Mumbai.

Also See:

Centre plans common pipeline for oil basins (28-Dec-06)