GAIL and Ashok Leyland to jointly seek opportunities in CNG businesses
11 August 2005New Delhi: GAIL (India) Limited and Ashok Leyland Project Services Limited (ALPS) has signed a co-operation agreement for pursuing business opportunities in compressed natural gas (CNG) and related sectors in India and abroad.
The two companies have joined hands to bring their respective complementary skills and strengths in diverse markets to jointly exploit project opportunities.
As a part of the co-operation agreement, GAIL and ALPS will jointly identify and evaluate business opportunities in CNG and related areas in India and other countries in Asia and Africa such as Iran, Indonesia, Philippines, Malaysia and South Africa.
As a step forward, a joint evaluation team from GAIL and ALPS is being formed to systematically undertake evaluation and identification of such opportunities. Once a potential project has been identified for joint participation, GAIL and ALPS will form a consortia, SPV or JVs for implementing the project.
The two companies have also said that they would also jointly bid for projects in India and overseas where complimentary capabilities of either or both of GAIL and ALPS would be a significant advantage. In addition, the two companies will evaluate the feasibility of transporting large volumes of natural gas in the form of CNG to remote areas and from one country to other country.
The agreement was signed between B S Negi, director (business development), GAIL and Asghar Ali, director, ALPS. Proshanto Banerjee, chairman and managing director, GAIL, was also present.
While GAIL, a natural gas major, is focused on all aspects of the gas value chain including exploration and production, gas marketing and transmission, gas processing, LPG production, petrochemicals and telecom, ALPS provides comprehensive project development services and entry strategies for companies both in India and abroad. Its special focus is on South-west Asia and the Middle East ALPS also maintains a global presence through associates in Dubai, London, Geneva, Paris, New York and Tehran to promote business in those countries.
Under its globalisation initiatives, GAIL has already taken equity participation in three retail gas companies in Egypt — Fayum Gas Company, NATGAS and Shell CNG, Egypt, and acquired 10 per cent equity in China Gas Holdings in China. GAIL is also pursuing business opportunities in China, Iran, Myanmar, Russia, Kazakhstan, Bangladesh, Turkey, and Romania in exploration and production, gas transmission, CNG and city gas distribution, LNG and petrochemicals. GAIL is also playing a key role in the area of Cross Border Pipelines in bringing Pipeline gas into India. GAIL has set up a wholly- owned subsidiary company viz GAIL Global (Singapore) Pte Ltd in Singapore.