With an aim to incorporate the city gas distribution network, Assam Gas Company Limited (AGCL) signed an agreement with Oil India Limited (OIL) at the Janata Bhawan in Guwahati on Saturday.
The agreement was signed in the presence of Assam Chief Minister Himanta Biswa Sarma. Cabinet ministers Bimal Borah and Jayanta Mallabaruah were present at the occasion. AGCL Chairman Bolin Chetia and OIL CMD Ranjit Rath were also a part of the agreement-signing ceremony.
With the signing of the agreement, AGCL and OIL will jointly work in the distribution of natural gas. The agreement intends to promote the green energy instead of fossil-based fuel. The JV Company will build local natural gas grids across the authorised areas, set up CNG stations, and provide Piped Natural Gas to domestic and commercial establishments. As per reports, AGCL and OIL will also jointly work in the state of Tripura.
In February this year, the Assam government signed an agreement with OIL for the exploration of crude oil and natural gas in the northern bank of Brahmaputra. The state government signed Petroleum Exploration Licenses deeds for two open acreage licensing policy (OALP) blocks with Oil India Ltd in Guwahati on Thursday. Oil will invest around Rs 12 crores in these projects and will start seismic survey from February 2023. Ananda Kr. Das, Joint Secretary & Director (Geology & Mining), Government of Assam & J.P Das, Executive Director (Frontier Basin), OIL, have signed the deeds on behalf of Government and Oil India Limited.