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GAIL to market PMT gas

NEW DELHI: GAIL India has signed a historic contract with the consortia of Reliance Industries, the BG Group of Britain and Oil and Natural Gas Corporation (ONGC) for buying the entire quantity of gas (17.3 million standard cubic metres a day).

According to an official statement here, GAIL will buy the gas at $5.73 per million British thermal unit for the Panna field and $5.57 per million British thermal unit for the Tapti field.

The contract was signed on Monday and is in pursuance of the Government appointing GAIL as its nominee to take the entire Panna-Mukta-Tapti (PMT) gas.

Agreements were also reached regarding the supplies to consumers.

GAIL signed a term-sheet to supply, at production sharing contract prices, 3.6 million standard cubic metres (mscmd) of natural gas to Reliance Industries and 2.13 mscmd of gas to Gujarat Gas Company as per the advice from the Ministry of Petroleum and Natural Gas. It also signed a short term term-sheet for 15 days with Gujarat State Petroleum Corporation for the supply of natural gas for its city gas and small industries.

After this period of 15 days, GAIL would evolve a system for further supplies.

The present supply of 5 mscmd of gas at APM prices to power and fertilizer units will be maintained.

Apart from this, GAIL will supply 1.5 mscmd to Rajasthan Rajya Vidyut Nigam Ltd. and one million standard cubic metres of natural gas to eight fertilizer units along the Hazira and HBJ pipeline and 0.9 mscmd to Torrent Power.

GAIL would get the remaining 2.8 mscmd for extracting LPG from the fuel.

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