“Arrow and GAIL believe this planned cooperation will lead to a wide range of opportunities for both companies – in India, Australia and, potentially, elsewhere,” the two companies said in a joint statement.

GAIL plans to invest substantially in Arrow’s Australian operations.

“It is likely that any investment by GAIL will be made across the entire value chain, including investment in both exploration and future production projects,” the two companies said.

GAIL and Arrow also aim to form a joint venture to investigate opportunities to participate in Indian CSM projects.

“This joint venture, which may include other parties, will combine GAIL’s country knowledge and market position with Arrow’s technical and development experience to analyse, high grade and potentially jointly bid for exploration blocks in the upcoming round of acreage releases in India,” the companies said.

GAIL and Arrow will also examine opportunities for exporting gas from Arrow’s projects to India and other markets through potential gas-to-liquids and compressed natural gas project opportunities.

GAIL technical staff will also be seconded to Arrow operations in Australia to provide mutual technology exchange.

GAIL, India’s principal gas transmission and marketing company, was set up by the Indian Government in August 1984 to create gas sector infrastructure for sustained development of the gas market in the country.

GAIL has since expanded into gas processing, petrochemicals, liquefied petroleum gas transmission and telecommunications. The company has also extended its presence in power, liquefied natural gas re-gasification, city gas distribution and exploration and production through equity and JV participation.

Net financial turnover for the year 2004-05 was $US2.7 billion ($A3.6 billion) and net profit was $US435 million. GAIL is listed on the Bombay Stock Exchange and the Indian Government retains a majority shareholding.