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Rediff.com  » Business » GAIL, BPCL float joint venture

GAIL, BPCL float joint venture

Source: PTI
January 16, 2006 20:05 IST
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State-run gas utility GAIL India and state refiner Bharat Petroleum Corp Ltd have floated a joint venture company to supply piped natural gas for domestic and commercial use and compressed natural gas to automobiles in Pune.

Maharashtra Natural Gas Ltd, the equal joint venture of GAIL and BPCL, plans to set up 29 CNG stations and supply piped natural gas to about 1,000 domestic consumers in the first three years. It is expected that CNG supply to automobiles shall commence by September 2007.

"The joint venture company will implement city gas projects for supply of piped natural gas to domestic, commercial and industrial consumers and CNG to automobile consumers in the city of Pune," a GAIL statement said.

With the incorporation of MNGL, the supply of PNG and CNG shall be expedited in Pune, which has been identified by the Supreme Court as one of the most polluted cities having high vehicular pollution.

"Natural gas to Pune shall be supplied by GAIL's Panvel-Pune pipeline, which is likely to be commissioned by June 2007. This pipeline will be connected to GAIL's Dahej-Uran pipeline, which is scheduled to be commissioned by February 2007," the release said.

MNGL is the third joint venture of GAIL and BPCL for implementation of city gas projects. Central Uttar Pradesh Gas Ltd is implementing gas projects in Kanpur and Bareily and Green Gas Ltd was implementing such projects in Lucknow and Agra.
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