• search

ONGC to sell gas to GAIL for 15 years

Written by: Staff
|

New Delhi, July 7: Exploration and production giant, ONGC today signed a gas sales agreement for selling 50 million cubic metres of gas (MSCM) per day for a period of 15 years, with state owned Gas Authority of India Limited (GAIL).

Under the Gas Supply Agreement (GSA), the price of gas will be determined by the government gas pricing order.

''It is a binding agreement for 15 years. We have a take or pay agreement. If we don't take, we pay 90 per cent of the committed amount,'' GAIL Chairman Proshanto Banerjee said here after signing of the agreement between the two state owned corporates.

The government has fixed the administered price mechanism (APM) gas price at 1.75 dollars per million metric British thermal units (MMBTU). The price sold by private players is more expensive at 4.75 dollars per mmbtu.

UNI

For Daily Alerts
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more