GAIL-EIL to jointly bid for gas business abroad
State-run GAIL said on Wednesday that it had signed a pact with Engineers India Ltd for bidding for natural gas business overseas.business Updated: Aug 31, 2005 16:45 IST
State-run GAIL India Ltd said on Wednesday that it has signed a pact with Engineers India Ltd for bidding for natural gas business overseas.
"The Memorandum of Cooperation between GAIL and EIL will enable both the companies to bid (for gas business) overseas jointly, in which GAIL will be responsible for project management and financing and EIL will be responsible for engineering and procurement," a GAIL statement said.
GAIL is making efforts to participate in overseas natural gas transportation and gas processing projects, which would run on Build, Own, Operate, and Transfer (BOOT), Build, Own and Operate (BOO) and Engineering, Procurement and Construction (EPC) basis through JV or Consortium route.
Both the companies will propose suitable sub-contractor(s) for construction, the release said.
GAIL Director (Marketing) UD Choubey and EIL Director (Commercial) PK Saha signed the MoC. Speaking on the occasion, GAIL Chairman and Managing Director Proshanto Banerjee said: "This cooperation has got tremendous significance in materializing the vision of GAIL for its global presence in an era when transnational gas pipeline, liquefaction and re-gasification of natural gas has opened great opportunities abroad.
"Cooperation and joint approach is required not only to function but also to flourish in the business," he said, adding particularly in the context of prevailing high costs of liquid fuel now.
EIL has also been providing consultancy services across the world in oil and gas projects and has presence in the countries of Middle East and North Africa like Qatar, Oman, Saudi Arabia, Libya, and Algeria.
Speaking on the occasion, EIL Chairman and Managing Director MK Dalal said "this MOC will enable both the companies to project a combined Indian face for global business opportunities abroad."
First Published: Aug 31, 2005 16:45 IST