The State-run Odisha Industrial Infrastructure Development Corporation (IDCO) will soon sign a memorandum of understanding (MoU) with the Indian Oil Corporation ltd (IOCl) to develop infrastructure for gas distribution in the State, said official sources.
The MoU is meant for developing infrastructure for natural gas, city gas distribution and supply of gas to industries. As per the terms of the draft MoU, both the entities would explore possible cooperation in the areas of total energy solutions, especially natural gas. "We have already prepared the draft MoU and are awaiting the State Government's nod before signing the pact with the IOCl. It is up to the Government when the MoU will be signed," said a senior Idco official.
Meanwhile, Chief Secretary BK Patnaik held a review meeting on the proposal. IDCO CMD Vishal Dev made a presentation on the provisions relating to the pact to be signed with the IOCl.
According to the draft MoU, both the agencies would strive towards development of natural gas infrastructure such as pipelines, city gas distribution network and lNG (liquefied natural gas) import terminals for ensuring availability of natural gas to all consumers in domestic, commercial, industrial and transport sectors after obtaining all due permissions from the regulatory bodies, said sources.
The IOCl has already inked an MoU with the Dhamra Port Company ltd (DPCl) to set up a five-million-tonne-per-annum lNG terminal at Dhamra to meet the demand of natural gas in the eastern region. It may be noted that the Petroleum and Natural Gas Regulatory Board (PNGRB), the upstream regulator for the petroleum sector, has identified nine locations in the state, Bhubaneswar, Khurda, Rourkela, Bhadrak, Jajpur, Anandpur, Baripada, Baleswar and Kamakhyanagar, for development of a City Gas Distribution (CGD) network.