GAIL not interested in CNG offer from Iran

Vol 8, PW 13 (22 Sep 04) News in Brief
     

GAIL has rejected an Iranian invitation to set up CNG infrastructure in Tehran and the two smaller cities of Karaj and Isfahan.

The Iranians want us to be contractors and set up CNG stations but not run them, a GAIL director tells us. GAIL would only be interested in this project if it is offered equity in a joint venture company, not for work as a contractor.

In July, GAIL director planning BS Negi led a delegation for talks with the Iranian Fuel Conservation Organisation (IFCO) on bilateral cooperation in the development of Irans CNG infrastructure. IFCO had asked us to prepare a proposal for CNG development in the three cities.

So far GAIL has not received a formal request in writing from IFCO and as such hasnt yet communicated its unwillingness to proceed with the venture. Iran plans to spend $2bn to promote CNG and wants to convert over 1.5m vehicles to CNG.

For this it needs to establish 500 CNG stations by 2015.