Gail Enters Into Pact With Philippines

New Delhi, September 16: | Updated: Sep 17 2003, 05:30am hrs
Gail India Limited is entering into a gas sector co-operation agreement with the Republic of Philippines. A memorandum of co-operation (MoC) will be signed on Wednesday between energy secretary, government of Philippines, Vicente S Perez Jr and chairman and managing director, Gail, Proshanto Banerjee.

The areas under the MoC include projects of mutual benefit covering CNG (compressed natural gas), gas processing, pipeline construction, operation and maintenance as also participation in international and regional organisations relating to the overall development of the downstream natural gas industry.

For implementing specific gas sector projects in the Philippines, India and third countries, Gail is entering into a separate MOC with the Philippines National Oil Company-Exploration Corporation (PNOC-EC). This agreement will also be signed on Wednesday in the Philippines by President and CEO, PNOC-EC, Rufino B Bomasang and Mr Banerjee.

Under this MOC, the two companies would also evaluate opportunities including development of CNG and residential sector infrastructure for retail gas marketing in the Philippines, joint participation in cross country pipeline projects in the Philippines, India and third countries, participation in exploration and production (E&P), development of gas processing facilities and gas-based petrochemical plants besides participation in importation of LNG (liquified natural gas) to the Philippines through development of LNG receiving and regassified facilities.

Speaking to FE (just before leaving for the Philippines), Mr Banerjee said, We are entering into separate MOCs with the department of energy, Philippines and PNOC-EC for gas sector related opportunities. After signing the MOC, Gail and PNOC-EC will constitute joint teams which will evaluate specific projects in natural gas infrastructure projects in India, Philippines and third countries.

Mr Banerjee said that Gail has also expressed specific interest for participation in two significant projects in the Philippines including the Batangas-to-Manila gas pipeline project (BAT MAN-I) and the Bataan-Manila LNG terminal and gas pipeline project (BAT MAN-II).

The BAT MAN-I gas pipeline project covers the construction and operation of a gas pipeline system from the province of Batangas to Metro Manila to deliver the gas to industries and power stations located near or along the proposed pipeline route.

Industrial plants using conventional fuel such as LPG, diesel, kerosene and possibly fuel oil as also new and existing power plants near metro Manila, being considered to run on natural gas, are the target markets. The transmission component of the pipeline system is about 100 kms.

The BAT MAN-II gas pipeline project covers the construction and operation of gas pipeline transmission and distribution systems intended to supply natural gas from a LNG import terminal in the Bataan province to the industrial markets in Luzon island particularly in the provinces of Bataan, Zambales, Pampanga, Tarlac, Rizal, Cavite and the metro Manila area.