Indian Oil, Adani Energy in city gas distribution pact
13 Dec 2008
Public sector oil marketing company Indian Oil corporation and Adani Energy Ltdplan to set up a joint venture enterprise for city gas distribution in select parts of Haryana, Punjab, Rajasthan and Uttar Pradesh.
The joint venture will explore the formation of state-wise subsidiaries and envisages distribution and marketing of CNG for the automotive sector and natural gas for homes, commercial and industrial establishments.
The two companis already have a long-term agreement for creating import and storage facilities for crude oil at Mundra Port.
Adani also has a franchisee agreement to sell CNG from a number of Indian Oil retail outlets in Gujarat.
Adani also has access to gas for city gas distribution projects in Faridabad and Noida.
The two companies have also provisioned for the participation of local state governments and financial institutions if required to involve them.
Indian Oil also plan to take a stke in the LNG regassification terminal being promoted by Adani Energy and in the future may also participate in other LNG import and regassification terminal.
Also on the anvil is development of CBM blocks at Jharia and bringing gas for Rajasthan and Punjab.
