India's Gail, Exxon Ink Gas MoU

India’s biggest gas marketing and transportation firm Gail and US major ExxonMobil have signed a memorandum of understanding (MoU) to develop natural gas market in India, Gail chairman BC Tripathi said during a press meet in Mumbai May 28.

Without offering much details about the MoU, Tripathi said that the two companies will explore how LNG can be used in trucks and buses. He said that the two companies will also work on developing LNG bunkering market. Tripathi did not say when a final agreement will be signed.

Also, he said that Mahanagar Gas (MGL), which retails gas in Mumbai and adjoining areas, will soon set up two LNG stations in the city. MGL is owned by Gail, government of Maharashtra and Anglo-Dutch Shell, which acquired the stake when it bought BG. The two LNG stations will retail both LNG and CNG, he said.

Talking about the Dabhol LNG terminal, he said that the company will next month float the tender for LNG breakwater. Once the breakwater is complete the terminal will have a capacity of 5mn mt/yr. At present its capacity is 1.7mn mt/yr.

Gail’s Kochi-Mangalore gas pipeline is now 95% complete and the project is expected to be fully ready by July. It will supply gas to fertilser plants, industries and city gas network around Mangalore, Tripathi said. Gail May 27 announced its highest ever annual profit during the 12-months to March 2019 (fiscal year 2018-2019).