Subscribe

RSS Feed (xml)

Powered By

Skin Design:
Free Blogger Skins

Powered by Blogger

Thursday, March 8, 2007

Shell to share GAIL pipeline


Public sector gas utility GAIL(India) Limited and Indian arm of Anglo-Dutch Conglomerate Shell India have agreed to sharing of GAIL’s pipeline interconnectivity with Hazira terminal for gas supplies in the country. The two companies have initialed a broad framework of agreement for co-operation. This will help evacuation of regassified liquefied natural gas (R-LNG) from Shell’s Hazira terminal for supplies to GAIL’s customers.

As per the broad framework of the agreement, the two companies will now work out the modalities for transmission of R-LNG through GAIL’s pipeline, access of Shell’s regassification facility to GAIL, and long-term arrangements with regard to gas supply and distribution, according to a company release.

The framework emphasises the need for both companies to examine the complementary nature of their facilities and build cooperation around them for mutual benefit. The agreement has the potential to provide gas to GAIL for utilizing its transmission capacity while at the same time assisting Shell to evacuate its R-LNG.

GAIL owns and operates a network of around 6,000 km of natural gas high pressure trunk pipelines with a capacity to carry around 140 million metric standard cubic meters per day (MMSCMD) of natural gas across the country. Currently, it transmits about 84 MMSCMD of gas through the cross-country pipeline network.

Meanwhile, the pipeline tie in at Hazira has also been completed and gas-in into the pipeline is expected to commence shortly.


Source: HT Business
Compiled By: Saurav Chakraborty

No comments: