GAIL (India) Ltd. and Reliance Industries Ltd. (RIL) could team up for setting up overseas petrochemical projects. This is in pursuit to the decision by the board of GAIL that permits the company to continue looking at strategic options for expanding its petrochemicals business.
Indications are that GAIL is considering signing of a memorandum of understanding (MoU) with the private sector major for the purpose. As per the proposed agreement, the two will explore opportunities to set up petrochemical projects in places gas-rich nations. These countries include Russia, some of the former Soviet Union states and West Asia. The two entities may jointly float special purpose vehicles having equal stakes.
An MoU already exists between RIL and GAIL for cooperation in the gas sector. The areas of joint cooperation identified include natural gas pipeline transmission and marketing, CBM gas opportunities, city and local gas distribution, operations and maintenance services, exploration and production, and technology and knowledge-sharing.