The joint venture will also explore the formation of state-wise subsidiary companies and envisages distribution and marketing of compressed natural gas (CNG) for the automotive sector and natural gas for domestic, commercial and industrial sectors. IndianOil and the Adani group already have a long-term agreement for creating import and storage facilities for crude oil at the Mundra Port in Gujarat. There is also a franchisee agreement by which CNG is being sold from a number of IndianOil retail outlets in Gujarat.