GAIL has signed two contracts for sourcing natural gas from PY-1 field for supply to a power plant in Tamil Nadu.
A long term gas sale contract (GSC) for the PY-1 gas supplies was signed between the company and HOEC. The company also entered into a contract in downstream for the supply of PY-1 gas with PPN Power Generating Company in Tamil Nadu.
The GSC between Gail and HOEC provides for a primary term of 15 years which can be extended on mutually agreed terms. For the first six years, gas supplies are expected in the range of 51,000 mmbtu per day. Gail is also entitled to receive additional gas, if any, from the field as per the terms of the contract.
Currently, GAIL owns and operates a network of 7,100 km of natural gas high pressure trunk pipeline. During the current five year plan, it is investing Rs 20,000 crore to build up 5000 km of pipeline.
On the Bombay Stock Exchange, the company's stocks were trading at Rs 349.05, down 0.56 per cent at IST 1454.
