OIL, AGCL to form joint venture for piped natural gas distribution

The Assam Gas Company Limited (AGCL) and Oil India Limited (OIL) on Saturday signed an agreement for the establishment of a joint venture company to lay, build and operate city natural gas distribution networks in parts of Assam and Tripura.

The agreement was signed between the two sides at a ceremony here in the presence of Assam Chief Minister Himanta Biswa Sarma, an official statement said.

The Assam government-owned AGCL will have 51 per cent stake, while the OIL will hold the remaining 49 per cent share in the joint venture company.

It will build local natural gas grids and provide piped natural gas to domestic and commercial establishments in Lakhimpur, Dhemaji, Darrang, Udalguri, Sonitpur and Biswanath Chariali in Assam, and a few districts of Tripura.

The company will also set up numerous compressed natural gas (CNG) stations, the statement said.

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Speaking at the event, Sarma said the signing of the agreement between AGCL and OIL would provide a major thrust to the ongoing process of industrial development in the state.

The JV company, with an authorised share capital of Rs 500 crore and initial paid-up capital of Rs 100 crore, would prove to be a milestone in the strengthening of the state's economy, he added.

The chief minister also expressed hope the JV company would help in the state's endeavour to make the transition towards a greener fuel-based economy, in sync with the Northeast Hydrocarbon Vision 2030.

He lauded the OIL management for reinvesting a part of its earnings in Assam and other parts of the Northeast through initiatives such as the agreement signed today.