GAIL contracts to takeover PMT gas marketing

GAIL has also signed a short-term term-sheet with Gujarat State Petroleum Corporation Limited for the supply of natural gas for its city gas and small industries, reports Deepak Joshi.

Public sector gas utility GAIL (India) Limited has signed a contract with the consortia of Reliance Industries, BG Group of UK and Oil and Natural Gas Corporation, the co-venturers of the PMT fields in western Offshore, for buying the entire quantity of 17.3 million metric standard cubic meter per day (MMSCMD).

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GAIL will buy the gas at $ 5.73 per million British thermal unit (Btu) for Panna field and $5.57 per million Btu of the Tapti field. The contract was signed late on Monday night and is in pursuance of the Government nominating GAIL as its nominee to take the entire PMT gas, a company release stated.

Subsequently, agreements were also reached regarding the supplies to consumers. GAIL signed a term-sheet to supply, at production sharing contract prices, 3.6 MMSCMD of natural gas to Reliance Industries Ltd and 2.13 MMSCMD of gas to Gujarat Gas Company Limited as per the advice from the petroleum ministry.

GAIL has also signed a short-term term-sheet for 15 days with Gujarat State Petroleum Corporation Limited for the supply of natural gas for its city gas and small industries. After this period of 15 days, GAIL will evolve a system for further supplies.