The largest transporter and marketer of natural gas of India, the state-owned GAIL India, has signed some contracts on Tuesday to sell the entire volume of gas that it has produced from its Panna-Mukta and Tapti (PMT) fields. The company officials have informed that this selling of the right to market the entire 17 million cubic meters per day (mcmd) of gas produced from the fields, is going to increase the marketing margin of GAIL by Rs 100 crore per year. They added that the transportation revenue of the company would also rise by Rs 450 crore per year.
Confirming the news, the Director (Marketing) of GAIL, Mr. B C Tripathi said, "We have signed contracts for selling the entire volume of PMT gas". The sources said that the company has signed the purchase contracts with the operators of the fields like Reliance Industries (RIL), British Gas India and Oil and Natural Gas Corporation (ONGC). The sources added that GAIL has also entered into agreements with some of its gas consumers that include RIL and BG, in order to sale gas at the government-approved price of $5.7 per million British thermal unit (mBtu).
According to the industry sources, the RIL and BG did refuse to sign the contract in the past, unless they were given a share of the gas from the field for feeding their requirements. The sources said that with the signing of this contract, the RIL is going to get 3.6 mcmd of gas from the PMT fields for its petrochemical plants and the BG would get 2.13 mcmd of gas that it will take through its subsidiary, Gujarat Gas for supplying to cities in Gujarat. The sources further informed that around five mcmd of gas would be supplied to the power and fertilizer plants and the GAIL would also utilize around 2.8 mcmd of gas for extracting LPG.
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| Posted : 4/2/2008 |
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