GAIL, IFFCO join hands for gas-based projects

02 February 2009

GAIL (India) Limited and Indian Farmers Fertiliser Cooperative Limited (IFFCO) today signed a memorandum of understanding (MoU) for cooperation in natural gas sector related opportunities in India.

The two companies are looking at the possibilities of setting up a gas-based power plant and a fertiliser unit in the country.

The agreement was signed by  A K Purwaha, director (business development), GAIL and V K Bali, director (technical), IFFCO, in the presence of U D Choubey, chairman and managing director, GAIL and U S Awasthi, managing director of IFFCO, a joint press release said.

The two companies would jointly evaluate the potential of setting up of a gas-based power plant and other industries, including chemicals, fertilisers, compressed natural gas (CNG) and piped natural gas (PNG) in India and also explore the possibility of sourcing of natural gas / LNG for the identified projects, the release said.

GAIL and IFFCO would jointly carry out the feasibility study for identified projects. Based on the techno-economic report, a joint venture company between GAIL and IFFCO would be formed for implementing the projects.

''With the increased availability of natural gas in the country from eastern offshore, more gas is likely to be available for fertiliser sector, which may be used not only by existing gas-based fertiliser plants but also for other fertiliser plants in the country which are proposed to be converted to gas based,'' said Choubey.