OIL and AGCL will form a joint venture for the distribution of piped natural gas

Assam Gas Company Limited (AGCL) and Oil India Limited (OIL) on Saturday signed an agreement establishing a joint venture to install, build and operate natural gas distribution networks in the city in parts of Assam and Tripura.

The agreement was signed between the two parties at a ceremony here in the presence of Assam’s Prime Minister Himanta Biswa Sarma, according to an official statement.

AGCL, owned by the Assam government, will have a 51 percent stake, while OIL will hold the remaining 49 percent of the joint venture.

It will build local natural gas networks and provide piped natural gas to household and commercial establishments in Lakhimpur, Dhemaji, Darrang, Udalguri, Sonitpur and Biswanath Chariali in Assam, and some districts of Tripura.

The company will also install numerous compressed natural gas (CNG) stations, the statement said.

Speaking at the event, Sarma said that the signing of the agreement between AGCL and OIL would give a great boost to the ongoing industrial development process in the state.

The joint venture, with an authorized share capital of Rs 500 crore and initial paid-up capital of Rs 100 crore, will prove to be a milestone in strengthening the state’s economy, it added.

The prime minister also expressed his hope that the joint venture will help the state’s effort to transition to a greener fuel-based economy, in sync with the Northeast Hydrocarbon Vision 2030.

He praised OIL’s management for reinvesting a portion of its profits in Assam and other parts of the North East through initiatives such as the deal signed today.