By OGJ editors
HOUSTON, Jan. 3 -- Oil & Natural Gas Corp. and GAIL (India) Ltd., both controlled by the government of India, have initialed agreements for cooperation in the natural gas and petrochemicals businesses.
One area of agreement includes the exclusive sale of gas produced by ONGC to GAIL for 3 years. The agreement includes the swapping of gas produced by both companies to create logistical efficiencies.
GAIL also initialed agreements with ONGC Petro Additions Ltd., a joint venture, to become a copromoter of a petrochemical complex under development in the Dahej Special Economic Zone in Gujarat. The plant is to have capacity to produce 1.1 million tonnes/year of ethylene.
ONGC is India’s largest exploration and production company. GAIL is the main pipeline and distribution system operator and also produces gas.