GAIL signs contract for supply of PMT gas

New Delhi, 01 April 2008. GAIL (India) Limited has signed a contract with the consortia of Reliance Industries, BG Group of UK and Oil & 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. GAIL will buy the gas at USD 5.73 per million British Thermal Unit for Panna field and USD 5.57 per million British Thermal Unit of the Tapti field. The contract was signed late last night and is in pursuance of the Government nominating GAIL as its nominee to take the entire PMT Gas.

Subsequently, agreements were also reached regarding the supplies to consumers. GAIL signed a term-sheet to supply, at PSC 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 Ministry of Petroleum & Natural Gas, Government of India.

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.

The present supply of 5 MMSCMD of gas at APM Prices gas to Power and Fertilizer units will 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 fertilizer units along the Hazira and HBJ pipeline and 0.9 MMSCMD to Torrent Power.