GAIL (India) Ltd signed a memorandum of cooperation (MOC) with Ergo Exergy Technologies Inc, Canada, for development of gasification from large coal resources, which are not exploited by conventional methods of mining for either economic or technical reasons. The MoC was part of over half a dozen agreements concluded by GAIL on the sidelines of the 'third Asia gas buyers' summit in New Delhi.

The other agreements include an MoU with the National Institute of Oceanography (NIO) for offshore gas hydrate exploration, an MoU with the NCDEX commodity exchange to develop a spot market for natural gas trading, an MoU with Spectra International of Bangladesh for joint co-operation in CNG infrastructure development projects and gas retail markets in Bangladesh and an MoU with software giant Infosys Technologies for development and commercialisation of software to manage the retail natural gas business across all categories of customers worldwide.

GAIL also signed an agreement with the Tripura Industrial Development Corporation (TIDC) and the Assam Gas Company Ltd (AGCL) to pick up a controlling stake of 29 per cent in their joint venture company, Tripura Natural Gas Company Ltd (TNGCL).

Coal gasification
GAIL will prospect coal and lignite deposits for underground coal gasification (UCG) projects in India along with Ergo Exergy. The design of pilot and commercial UCG plants, their construction, commissioning, operation and maintenance will also be carried out jointly. The companies will cooperate for methods of clean-up, safety and environmental engineering of these plants.

Ergo Exergy, the developer and the owner of the Exergy UCG technology which powers commercial UCG projects worldwide, will help GAIL to determine the technical and economic viability of each project, bring in effective and efficient drilling techniques and production of UCG gas in commercial quantities with quality and consistency for fuelling a commercial combined cycle power plant. It will supply the know-how for UCG power generation and chemical synthesis including cleanup, processing and conditioning of UCG gas for value added applications such as production of methanol and clean diesel.

Offshore gas hydrates
In the gas hydrate projects under the 'national gas hydrate programme' (NGHP), GAIL is actively utilising the expertise of the National Institute of Oceanography, Goa, in the Indian Ocean. Under the MoU, a joint work group will be set up to discuss and finalise specific projects. Within a month, both GAIL and NIO will nominate representatives to a joint working group, which will evaluate project proposals on gas hydrate including deliverables, timelines and a funding schedule. NIO and GAIL will exchange data generated, processed and interpreted during this collaboration. NIO and GAIL scientists will associate in acquisition, processing and interpretation of data pertaining to all projects related to exploration and exploitation of gas hydrate.

Natural gas spot trading
The GAIL has signed an MoU with NCDEX to make its online trading platform enabling them to trade in spot contracts of natural gas. Both GAIL and NCDEX have agreed to jointly educate the various stakeholders about the natural gas platform.

A joint core team will designing the natural gas spot trading contract market, risk assessments, formulation of tools for hedging risks and develop a mechanism of physical clearing and settlement of natural gas disputes, to promote natural gas trading. Work will be completed within 60 days of the MoU, and trading is to commence within one month thereafter.

CNG infrastructure in Bangladesh
Under another MoU signed with Spectra, GAIL will undertake CNG and gas distribution projects on a 'build own operate and transfer' (BOOT) basis in Bangladesh. Spectra will support the implementation of projects in a cost effective and timely manner and obtain all the statutory clearances required for such projects.

Spectra is engaged in civil construction, real estate, logistic support services, healthcare, support services and liaison work for foreign companies in Bangladesh. GAIL and Spectra will jointly identify opportunities for setting up gas sector training facilities in Bangladesh. Spectra will develop business opportunities involving GAIL's expertise in CNG, gas distribution and marketing to private and public sector companies in Bangladesh. GAIL and Spectra will also offer consultancy services to Petrobangla and its subsidiaries.

IT solutions for the hydrocarbons industry
To manage retail natural gas business across all categories of customers worldwide GAIL has signed an MoU with Infosys, which aims at development and commercialisation of software. The initiative will include development of information technology solutions for system safety management, system integrity management and customer services.

The two companies will also jointly impart training to clients for the use of software and other services. Infosys and GAIL will form a joint working group to work out the modalities of creating a software solution for the retail piped gas and liquefied petroleum gas (LPG) market.

In a separate agreement signed with Tripura Industrial Development Corporation and AGCL, which gives GAIL a controlling stake of 29 per cent in the joint venture company Tripura Natural Gas Company Ltd (TNGCL). Under the new shareholding pattern, TIDC and AGCL each will hold 10 per cent equity while financial institutions and the public will hold the remaining 51 per cent.

In May 2004, the Government of Tripura decided that TNGCL would be the exclusive company to undertake retail gas distribution in the state of Tripura in addition to its existing business of distribution and marketing of natural gas for consumers in domestic, commercial and industrial sectors, including the automotive sector.

TNGCL is to undertake distribution and marketing of piped natural gas (PNG) in Tripura's cities, compressed natural gas (CNG) as fuel for vehicles and any other gaseous fuels permitted by the Government of India. The Government of India has allocated 0.25 MMSCMD of natural gas to Tripura, of which 0.13 MMSCMD was later transferred in favour of Tripura Natural Gas Company Ltd.