Gas transmission and marketing major GAIL (India) Ltd has entered into a gas cooperation agreement with Tamil Nadu Industrial Development Corporation (Tidco)?to evaluate medium and long term demand of gas potential of the state. As per the agreement, a working committee will be set up soon to conduct a preliminary techno-economic feasibility study on this, said UD Choubey, chairman and managing director, GAIL (India) Ltd.
Addressing a press conference along with Tidco CMD S Ramasundaram here on Friday, the GAIL chief said the working committee, comprising members of both the companies, will evaluate the short-medium-long term demand of gas in industrial, commercial, transport, residential sectors of the state, gas pipelines and other networks required for gas marketing, sources for ensuring continued supply at competitive prices, optical fibre cable network in potential gas pipelines. ?We expect to come out with a comprehensive study in the next six months and accordingly go ahead with this project,? Choubey said.
While Tidco will provide all the necessary data/informations, including studies pertaining to gas demand in the state, extend its cooperation on best effort basis to developers of gas pipeline infrastructure, associated facilities and optic fibre cable networks and other back-up supports. Based on this, GAIL will determine the exact natural gas supply options to the state, he said.
According to him, the company has identified gas sources in places such as Nagapattinam. Karaikkal, Puduchery, Kuttalam, Bhuvanagiri among other areas to put up gas pipeline and the same will be extended to Chennai.
According to Ramasundaram, the corporation has entered into a non-exclusive basis agreement with GAIL. ?We have options to source from Cauvery basin or from neighbouring KG basin sources or can even import and supply to the requirement. Our objective is to go for optimal gas utilisation of the available gas resources,? he added. The move will immensely benefit the state in a big way in bringing in new industries apart from cutting down the cost of manufacturing/production of the industries.