The Hindu Business Line : GSPC deal with GAIL for regassified LNG

Mr Proshanto Banerjee, Chairman and Managing Director, GAIL, and Mr C.K. Koshy, Chairman, GSPC, signed the agreement, here on Saturday. With this, GSPC would be accounting for one-fifth of the total gas that will be brought into the first LNG terminal in the country at Dahej, which is being flagged off on Monday.

As per the agreement, GSPC would purchase 0.5 million tonne per annum (tpa) of gas during the period of May 1, 2004 to April 1, 2005 out of the 2.5 million tpa of gas that will be available at the Petronet LNG Ltd's Dahej terminal. Thereafter, it will be one million tpa that will be on tap for GSPC, with the contract standing good till December 31, 2018 wherein the gas that will flow through the GSPC gas grid will be to the tune of 3.5 million standard cubic metre per day.

The agreement comprises a take-or-pay clause for the buyer and liquidated damages for the seller in case of non-delivery.

The value of this deal is put at Rs 800 crore per annum, with the gas thus made available to the industries of Gujarat poised to gain from a huge multiplier effect.

Meanwhile, Mr D.J. Pandian, Managing Director, GSPC, called upon the GAIL Chairman to allocate more gas to Gujarat and use the gas grid being put in place by the Gujarat State Petronet Ltd (GSPL) criss-crossing the State.

GSPC is also separately holding talks with IOC and BPCL to buy gas from their share in Petronet LNG.

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