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| ONGC |
Under the agreement, GAIL will contract the basic appropriate on all chat with the aim of ONGC will harvest from some of its fields in opportunity. But in legal action GAIL is unable to contract a 'good' charge inside 30 days, ONGC will take back the marketing appropriate.
GAIL would besides marketplace selected of the chemicals to be produced from the Dahej petrochemical composite being collection up by ONGC Petro-additions Ltd, a subsidiary of ONGC, the two companies thought in identical but separate press statements at this point. GAIL has 19 apiece cent stake in OPaL.
The agreements will be to begin with legally binding in place of three years and can be extended thereafter.
"This hang out initiative will give out as a catalyst in place of successful monetisation of chat from opportunity fields of ONGC, with GAIL only if the infrastructure and marketing tie-up in place of supply to would-be customers," the statements thought.
The two companies besides reached an understanding in place of promising swapping of to be had natural chat with a consider to optimise the logistics and overheads.
GAIL will be a co-promoter of the 1.1 million tons ethylene cracker petrochemical composite with the aim of OPaL is setting up by the side of Dahej SEZ by the side of a wealth cost of Rs 19,535 crore.
"An understanding has besides been reached in place of marketing of a portion of petrochemical products of OPaL by GAIL," it thought. "GAIL and ONGC would besides explore the risk of setting up a downstream piece using Butadiene, a by-product of OPaL, to GAIL in place of manufacture of value-added products."
Commenting on the occasion, ONGC Chairman and Manging Director R S Sharma thought negotiations on these agreements maintain been going away on in place of quite selected schedule and the agreements initiated at the moment shall create a classic road-map in place of organization growth by both the entities and shall besides reinforce mutual cooperation by two lubricate PSU giants.
GAIL Chairman and Managing Director B C Tripathi thought GAIL and ONGC maintain had a very long and symbiotic overtone and today's development will certainly strengthen this organization synergy in place of the mutual improvement in place of both the companies which will help promote long designate energy security in the terrain.