'No decision on gas supply to GAIL yet'

Contrary to claims made by GAIL, the Oil and Natural Gas Corporation on Tuesday said the issue of continuing gas supply from the Panna-Mukta-Tapti fields to the gas major has not yet been finalised.

GAIL had told the stock exchanges last Friday: "With the recent communication from the government of India to the PMT consortium to continue supply of 6 million cubic metres per day (mmscmd) of natural gas beyond March 2006, broadly on the same terms and conditions, GAIL does not anticipate any difficulty in meeting the demand during the ensuing summer and rabi season for want of PMT gas".

ONGC Chairman and Managing Director Subir Raha said the PMT consortium "" comprising Reliance Industries, ONGC and British Gas "" preferred to sell gas directly to consumers.

"GAIL collected $0.1-$0.20 dollar per million british thermal unit marketing margin for selling gas from the fields to consumers. We don't see why customers should pay extra when they can get the supplies directly from us," Raha said.

He added that the consortium operating the fields had asked the ministry for permission to directly sell 6 million standard cubic metres of gas per dayfrom the PMT fields, that is being supplied to GAIL.

"Though there is a rethink on the decision, we have not been instructed on the issue yet," he said.

Raha said the government had asked the consortium to supply 6 mmscmd of gas from the fields to GAIL for one year from April 1, 2005 so that power and fertiliser companies on the HBJ pipeline did not get affected.