Guwahati: Assam Gas Company Limited (AGCL) and Oil India Limited (OIL) signed a contract with the intention of incorporating the city gas distribution network at the Janata Bhawan in Guwahati on Saturday.
Chief minister of Assam Himanta Biswa Sarma was present when the agreement was signed. Bimal Borah and Jayanta Mallabaruah, cabinet ministers were in attendance.
AGCL Chairman Bolin Chetia and OIL CMD Ranjit Rath also took part at the signing of the contract.
With the signing of the contract, AGCL and OIL will collaborate on natural gas distribution. The pact aims to encourage the use of renewable energy rather than fossil fuels.
The JV Company will develop CNG stations, install local natural gas grids throughout the permitted regions and supply piped natural gas to residential and commercial buildings.
According to reports, AGCL and OIL would collaborate in the state of Tripura as well.
The Assam government and OIL signed a contract in February of this year for the exploration of natural gas and crude oil on the northern bank of the Brahmaputra. In Guwahati on Thursday, the state government and Oil India Ltd. inked Petroleum Exploration Licence documents for two open acreage licencing policy (OALP) blocks. Oil will commence seismic survey in February 2023 after investing about Rs 12 crores on these projects. The deeds were signed on behalf of the government and Oil India Limited by Ananda Kr. Das, Joint Secretary and Director (Geology & Mining), Government of Assam, and J.P. Das, Executive Director (Frontier Basin), OIL.