GAIL to set up CNG facilities in China

22 August 2005

New Delhi: GAIL (India) Limited is set to play a crucial role in converting the mass transportation system of Beijing to CNG before the Beijing Olympics to be held in 2008. China has decided to introduce CNG in Beijing city for converting entire transport vehicles by 2008, before commencement of the Olympics.

Currently, Beijing has 20,000 buses and 80,000 GAIL hopes to bring down vehicular pollution levels significantly through this project as it did in Delhi and Mumbai.

GAIL is pursuing equity participation in Beijing Gas Company and Beijing Jianggang Gas for implementation of the CNG projects in Beijing City. Beijing Gas Company has the concession to introduce CNG in municipality area of Beijing. Beijing Jianggang Gas is a JV between China Gas Holdings Limited and Beijing Gas Company for supply of natural gas in the six suburban districts of Beijing.

While GAIL holds stake in China Gas Holdings, the later has a 49 per cent stake in Beijing Jianggang Gas company. During the recent visit of a GAIL team that included Proshanto Banerjee, chairman and managing director; discussions were held with China Gas Holdings Limited for GAIL's participation in CNG projects of Beijing municipality area as well as in the six suburban districts of Beijing.

It is understood that urgency is being assigned for large scale introduction of CNG in time bound manner.