GAIL - SHELL to work on facility sharing

Gail India Ltd has announced that the Company and Shell India have agreed to sharing of the Company's pipeline interconnectivity with Hazira terminal for Gas supplies in the Country. The two Companies have initiated a broad framework of agreement for cooperation which will help evacuation of regassified LNG from Shell's Hazira terminal for supplies to Company's customers.

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

Under the broad framework of the agreement, the two Companies will now work out the modalities for transmission of regassified LNG through the Company's pipeline, access of the Shell's regassification facility to the Company, and long term arrangements with regard to gas supply and distribution.

The framework emphasizes 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 the Company for utilising its transmission capacity while at the same time assisting Shell to evacuate its R-LNG.

The Company owns and operates a network of around 6000 km of Natural Gas high pressure trunk pipeline with a capacity to carry around 140 MMSCMD of natural gas across the country, Currently, it transmits approx. 84 MMSCMD of gas through the cross country pipeline network.

Source : Equity Bulls

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