State-run gas utility GAIL (India) Ltd has said it is in talks with Engineers India Ltd to set up a joint venture to sell CNG for automobiles and piped natural gas to households in cities.
“EIL has a long association with GAIL. We are interested in having them as partners even in city gas distribution (CGD) projects,” GAIL Chairman and Managing Director B C Tripathi said on Monday.
The two firms are discussing bidding jointly for CGD projects in cities that would be put on offer by the sector regulator, Petroleum and Natural Gas Regulatory Board (PNGRB) in the future.
“They (EIL) could take equity stake in CGD projects bid by GAIL in the future,” he said. “Also, they could give us consultancy (for CGD projects).”
GAIL has formed a city gas subsidiary called GAIL Gas Ltd for selling compressed natural gas (CNG) to automobiles and piped natural gas to households and industrial consumers in cities.
Tripathi said a memorandum of understanding for cooperation in CGD projects was under discussion with EIL. “We hope to sign it soon,” he said.