GAIL inks pacts to takeover PMT gas marketing

New Delhi, Apr 1 (UNI) State-run gas utility GAIL India Ltd today signed contracts with the consortia of Reliance Industries, UK's BG Group and ONGC for taking over marketing of natural gas produced from Panna-Mukta and Tapti gas fields.

While Oil and Natural Gas Corporation holds 40 per cent stake in the gas fields, RIL and BG India hold 30 per cent each.

The contract is for buying the entire 17 million standard cubic meters per day of gas produced from these fields which are situated in the western offshore of the country, it said in a statement.

The company will buy the gas at 5.73 dollars per million British Thermal Unit for Panna field and 5.57 dollars per million BTU of the Tapti field.

GAIL, which has been nominated to take over the entire PMT Gas by the government, signed a term-sheet to supply, at PSC prices, 3.6 million stabdard cubic meter per day (MMSCMD) of natural gas to RIL and 2.13 MMSCMD of gas to Gujarat Gas Company Ltd.

The public sector utility 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.

The present supply of five MMSCMD of gas at APM Prices gas to Power and Fertiliser units will also be maintained.

Apart from this, GAIL will also supply 1.5 MMSCMD to Rajasthan Rajya Vidyut Nigam Limited and 1 MMSCMD of natural gas to 8 fertiliser units along the Hazira and HBJ pipeline and 0.9 MMSCMD to Torrent Power.

However it will get the remaining 2.8 mmscmd for extracting LPG from the fuel.

UNI AK SR KN1731