GAIL Gas, a subsidiary of GAIL (India), has signed a Memorandum of Understanding (MoU) with Energy Efficiency Services (EESL) for fast-tracking the implementation of co-generation and tri-generation projects and use of natural gas in industrial and commercial segments.

The MoU is set to benefit commercial installations like hotels, hospitals, airports, commercial malls, commercial/ government building, integrated residential complexes, educational institutions, data center, among others, with the advantages of combined heat & power technology.

It will help increase the consumption of natural gas through City Gas Distribution networks in co-generation and tri-generation projects, being a natural choice for operating the gas engines. Under the MoU, EESL will manage equipments  at the customer's location and GAIL Gas will supply natural gas to the feasible projects with in the authorised geographical areas. This MoU will help in achieving target set by Government of India to increase the share of natural gas in the energy mix of the country from the present level to 6.5% to 15% by 2020.

Co-generation project will facilitate substantial financial savings on utility costs, large carbon reduction and increased security of supply. It can be used on any scale ��" from a micro to a medium-sized power station servicing a whole industrial complex as well as commercial complexes. It is fuel-efficient means of generating electricity and useful heat in the same process.

Shares of the company gained Rs 1, or 0.27%, to trade at Rs 365.55. The total volume of shares traded was 13,845 at the BSE (10.05 a.m., Tuesday).