State-run Oil and Natural Gas Corporation (ONGC) and GAIL India (GAIL) have inked an agreement to ensure mutual business growth in the areas of natural gas and petrochemicals.
For gas business, both companies agreed to work together for exclusive sale of natural gas produced by ONGC from its various fields to GAIL during the next three years.
For ONGC Petro Additions Limited (OPaL), GAIL agreed to become a co-promoter of 1.1 mln tpa ethylene cracker petrochemical complex, under implementation in Dahej SEZ area, at a capital investment of Rs.19,535 crore. An understanding was also reached for marketing a portion of petrochemical products of OPaL by GAIL. Both would also explore the possibility of setting up a downstream unit using butadiene, a by-product of OPaL, to GAIL for manufacture of value-added products.
05-Jan-11 
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