The MoC forms the basis for a long term working relationship between the parties. The scope of the MoC includes feasibility studies of natural gas hydrate transport as an alternative to conventional pipeline and LNG transport. The parties shall also evaluate the possibility to set up a demonstration facility for this technology in India, and the parties shall jointly co-operate in the development and commercialization of this new technology.
Natural gas hydrate is a solid, ice-like compound composed of natural gas and water. Such hydrates are formed under moderate conditions and are stable at atmospheric pressure and about minus 15 degrees C. Natural gas hydrate has been identified as a promising non-pipeline gas transport method for reasonable volumes and transport distances.
GAIL is the largest natural gas company in India, with transmission, distribution, marketing and gas processing activities, as well as having diversified operations in exploration and production, petrochemicals and other integrated activities with overseas business. In its efforts pursuing new technology developments, GAIL has identified storage and transportation of natural gas in hydrate form for monetizing stranded gas fields as a priority area.
Aker Kvaerner Engineering & Technology AS in co-operation with Professor Gudmundsson at NTNU (Norwegian University of Science and Technology) has developed the concept of natural gas hydrate (NGH) technology for various applications. A technology company, NGH AS, has been established to commercialize the natural gas hydrates technology worldwide. The agreement partners are NGH AS and GAIL.
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