Today, the 23rd of October was yet another day that marked a great development in the Natural Gas sector in India. A Gas cooperation agreement was signed between the Government of Bihar and GAIL. The GCA enables cooperation for Natural Gas Infrastructure and City Gas distribution between the two.
The GCA was signed in Patna in the presence of Shri Nitish Kumar, Hon’ble Chief Minister of Bihar, Dr. Renu Kumari Kushwaha, Hon’ble Minister for Industries, Shri A. K. Sinha, Chief Secretary, Shri B. C. Tripathi, Chairman and Managing Director, GAIL, Shri Naveen Verma, Principal Secretary, Industries, Shri Prabhat Singh Director (Marketing), GAIL, and other senior officials from Department of Industries and GAIL (India) Limited.
As per the agreement, both the Bihar Government and GAIL will evaluate the viability for developing Natural Gas distribution and City Gas infrastructure in urban areas. They will cooperate on issues of developing the use of eco-friendly fuel, especially natural gas, in the state. About 621 kms of the 2050 Km Haldia – Jagdishpur pipeline will pass through 14 districts of Bihar. GAIL is making this pipeline for the transmission and distribution of natural gas.
The mainline of the Haldia-Jagdishpur pipeline covers Kaimur, Rohtas, Aurangabad and Gaya, the 4 districts of Bihar. The other 10 districts are covered by the spur lines. With this pipeline, GAIL will have the chance to discover increased possibilities of distributing City Gas in the major towns of Bihar. A joint venture for City Gas Distribution projects for domestic, commercial, industrial and transport sectors will also be initiated with this agreement.
As per the GCA, Natural Gas Demand Assessment and Preliminary Techno Economic Feasibility Study will be undertaken for
1. Evaluation of medium and long term gas demand potential for the state for industrial, commercial, transport and residential sectors;
2. Assessment of pipeline infrastructure and associated facilities required for supply of natural gas including optical fiber network;
3. Evaluation of natural gas supply options to Bihar on a long-term and competitive basis.
