Gas Authority Of India Ltd. (GAIL) and National Petrochemical Co. of Iran have signed an agreement to cooperate and invest in petrochemical projects in the two countries. GAIL and NPC have agreed to carry out feasibility studies for :
* Ethane/propane-based gas cracker in the South Pars zone in Iran
* A methanol plant in South Pars zone and its development into an olefin complex
* Polypropylene production plant to utilise the methanol
* PS, butadiene and styrene butadiene rubber plants in India.
GAIL will conduct the feasibility study on gas cracker project in Iran and bear all the associated cost towards this study. The companies will jointly assess the possibility for joint investment in a methanol plant in Iran besides jointly putting up petrochemical plants in India.
GAIL has also signed MoUs for:
*Equity participation in the Tripura Natural Gas Company and China Gas Holding
*Setting up CNG infrastructure Development projects with National Iranian Oil Company and Bangladesh’s Spectra International
* Developing a spot market for natural gas with NCDEX, a national commodity exchange
The two companies will form a core team for designing natural gas spot trading contract/market, assessing risk and formulation of tools for hedging the risk and developing mechanism of physical clearing and settlement of natural gas disputes.
In an MoU with Ergo Exergy Technologies Inc, Canada, Gail will jointly develop underground coal gassification projects in India. Ergo Exergy and GAIL will together identify and estimate reserves of coal for underground gassification at different locations in India.
17-Feb-05 
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