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Our Bureau

New Delhi, April 1

GAIL (India) Ltd has signed a contract with the joint venture partners of the Panna-Mukta-Tapti gas fields for marketing the entire produce of 17.3 million standard cubic metres per day (mmscmd) from the area. This puts to an end all speculations on whether two of the joint venture partners Reliance Industries Ltd (RIL), BG Group of UK will ink the agreement with GAIL or not.

Apart from RIL and BG, public sector ONGC is the third partner in the joint venture of the PMT fields lying in western offshore. According to a statement issued by GAIL, the gas transmission and marketing company will buy gas at $5.73 per million British thermal unit (mBtu) for Panna field and at $5.57 per mBtu for the Tapti field. The contract was signed on Monday 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, the statement said. GAIL has signed a term-sheet to supply, at production sharing contract (PSC) prices, 3.6 mmscmd of natural gas to RIL and 2.13 mmscmd of gas to Gujarat Gas Company Ltd as per the advice from the Ministry of Petroleum & Natural Gas. The PSC price would be $5.73 mBtu plus the marketing margin and the transmission tariff as applicable for Panna field.

GAIL has also signed a short-term term-sheet for 15 days with Gujarat State Petroleum Corporation Ltd 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 five mmscmd of gas at APM prices to power and fertiliser units will be maintained, the company said. Apart from this, GAIL will also supply 1.5 mmscmd to Rajasthan Rajya Vidyut Nigam Ltd and one mmscmd of natural gas to eight fertiliser units along the Hazira and HBJ pipeline and 0.9 mmscmd to Torrent Power. The remaining 2.8 mmscmd would be used by GAIL for extracting LPG from the fuel.

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