State-owned gas utility GAIL India Ltd on Wednesday signed an agreement for development of natural gas infrastructure and city gas network in Bihar.

GAIL signed a Gas Cooperation Agreement (GCA) with the Department of Industries, Government of Bihar, the company said in a statement here.

The GCA was signed in the presence of Bihar Chief Minister Nitish Kumar and GAIL Chairman and Managing Director B.C. Tripathi in Patna.

“Under the provisions of the GCA, GAIL and the Bihar Government will evaluate the feasibility for cooperation for the development of the use of eco-friendly fuel, especially natural gas, in the state as well as development of natural gas distribution and city gas infrastructure in identified urban areas and cities after obtaining due authorisation from the Petroleum and Natural Gas Regulatory Board,” it said.

GAIL is laying a 2,050 kilometre gas pipeline from Haldia in West Bengal to Jagdishpur in Uttar Pradesh, of which about 621 km will pass through 14 districts of Bihar.

The mainline will cover four districts of Kaimur, Rohtas, Aurangabad, Gaya while another 10 districts will be covered by spur lines.

The company had in the past signed similar agreements with several states like West Bengal, Karnataka and Tamil Nadu.

GAIL will explore the possibility of selling CNG to automobile and piped natural gas to households in major towns of Bihar along this pipeline route.

It will undertake an assessment of gas demand in the state and study techno-economic feasibility for use of gas in industrial, commercial, transport and residential sectors.

GCA also provides for undertaking a study for assessment of pipeline infrastructure and associated facilities required for supply of natural gas including optical fibre network and evaluation of natural gas supply options to Bihar on a long-term and competitive basis, the statement added.

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