The Hindu : Other States News : GAIL, Puducherry government sign ‘Gas Cooperation Agreement’

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Tuesday, Dec 11, 2007
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GAIL, Puducherry government sign ‘Gas Cooperation Agreement’

Special Correspondent

Joint exercise for assessment of potential of natural gas will be initiated

— Photo:T. Singaravelou

Pact ON NATURAL GAS: Chairman and Managing Director of GAIL U.D.Choubey and Puducherry Lieutenant Governor Mukut Mithi exchanging copies of agreement at Raj Nivas in Puducherry on Monday.

PUDUCHERRY: The Gas Authority of India Limited (GAIL) and the Government of Puducherry signed a “Gas Cooperation Agreement” for energy, environment and e-governance on Monday.

Shortly after the exchanging the copy of the agreement with Lieutenant Governor Mukut Mithi, Chairman and Managing Director of GAIL U.D.Choubey said that as part of the agreement, a joint exercise for assessment of the demand potential of natural gas and allied products in the Union Territory would be initiated and usage of the natural gas, Compressed natural gas (CNG), piped natural gas (PNG) and regassified liquefied natural gas (R-LNG) would be promoted.

“The areas identified are CNG for transport sector, gas for domestic kitchen, gas for power sector and overall socio-economic development of the region,” he said.

GAIL would take up assessment of requirement for gas with the Puducherry Government playing the role of facilitator, he added.

Presently, GAIL had been supplying gas to the Puducherry Power Corporation which had a capacity of 32.5 MW and the UT Government was looking for more quantity of gas to double its capacity and then make it to 100 MW. It had been supplying approximately four lakh standard cubic metres a day of natural gas from Narimanam gas fields to 19 customers in the region through its 60 km-long pipeline network, he pointed out.

It all depended on the availability of natural gas in the area, he said when asked about the possibility of meeting fresh demands for gas.

According to GAIL sources, the various areas for cooperation included pipeline infrastructure for distribution of natural gas, liquid hydrocarbons, promotion of joint venture for city gas distribution projects for domestic and transport sectors.

The joint action between GAIL and the UT Government envisaged setting up of a coordination group to study the demand potential of Puducherry for R-LNG, CNG and PNG to prioritise and take up projects in specific areas for implementation.

Stage-wise development of infrastructure would be taken up for distribution of energy to the doorstep of consumers, besides determining the modus operandi for implementation of the projects through a joint venture of GAIL and the UT Government. For joint venture route, the equity participation by GAIL, Department of Industries and Commerce and other institutions concerned should be decided on the basis of the demand potential and techno-economic study, the sources pointed out.

Minister for Industries V.Vaithilingam said the cooperation between GAIL and the Government would pave the way for ensuring an automobile pollution-free town. He expressed the hope that the feasibility study would be over in two or three years.

Among others, Minister for Transport and Education M.O.H.F.Shahjahan, Chief Secretary Rakesh Behari, Director (Marketing) of GAIL B.C.Tripathi and Secretary (Industries and Commerce) T.M.Balakrishnan were present.

In a separate function, Mr.Choubey handed over cheques for Rs.8.4 lakh to three institutions as part of extending support under corporate social responsibility initiative of the company.

The panchayat union middle school at Kadambankudi village in Nagapattinam district was given Rs.4 lakh for infrastructure development. The Oulgaret Municipality received Rs.2 lakh for the improvement of a roadside park on the East Coast Road at Karuvadikuppam in Puducherry. Mr.Choubey handed over a cheque for Rs.2.4 lakh to the Deputy Director of Public Health G.Subbarayulu Naidu for providing Electro Cardio Graph machines and nebulisers to primary health centres in the UT.

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