State-run GAIL India on Tuesday said it has signed an agreement with Kerala to develop natural gas infrastructure and city gas distribution network in the state.
The memorandum of understanding was signed by GAIL Executive Director (Marketing) J Wason and Kerala State Industries Development Corp Managing Director Alkesh Sharma in Thrivananthpuram on Monday.
Speaking on the occasion, GAIL Chairman and Managing Director B C Tripathi said the gas cooperation MoU aims to develop the natural gas distribution and city gas infrastructure and promote use of eco-friendly fuel.
It also seeks to set up a joint venture for marketing of gas or CNG to domestic, industrial and transport sectors.
GAIL and KSIDC would initiate a joint exercise for immediate assessment of demand for natural gas in the state.
The two would also conduct techno-economic studies for laying pipelines to demand centres and setting up city gas distribution network in towns.
"The MoU also provides for GAIL and Government of Kerala to identify industrial clusters for distribution of natural gas as fuel and to determine modus operandi for setting up of joint ventures by GAIL," the release said.
The GAIL board has already approved laying of 1,114-km Kochi-Kanjirkkod-Mangalore-Bengaluru pipeline at an estimated cost of Rs 3,032 crore.