NEW DELHI, Dec. 5 (UPI) -- Reliance Industries Ltd. and the Gas Authority of India Ltd. have agreed on joint co-operation in the petrochemicals sector.

Under the pact, both companies will explore opportunities to set up petrochemical complexes outside India in feedstock-rich countries. A working group, comprising representatives from both companies, will examine identified opportunities. A new company will be floated to set up the petrochemical complexes, state-run GAIL said Wednesday.

The multibillion dollar petrochemical plants in gas-rich Middle-East, Central Asia or in oil-rich Russia is likely to have a capacity of 1.9 million to 2 million tons.

GAIL Chairman U.D. Choubey said he recently held talks with authorities in Russia and Qatar and indicated this kind of a deal was possible. The working group is expected to select a site for the proposed project by March 2008.

"We may also jointly take up an integrated project involving production of feedstock and then converting it into value-added products," a GAIL statement said.

The statement noted that natural gas or naphtha was likely to be the feedstock for the plant and the two companies, if allocated a gas field in target countries, will look at jointly developing it and converting the gas into petrochemicals.

The project details, cost, financing and equity will be decided once sites are selected and a feasibility report commissioned. GAIL and RIL will have equal stakes in the special-purpose vehicles for the petrochemical project.