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Gujarat Gas Company Ltd (GGCL) and Gujarat State Petroleum Corporation Ltd (GSPC) on Tuesday signed a Memorandum of Understanding (MoU) for a long-term gas supply deal under which GSPC will supply 0.85 million standard cubic metres per day (mmscmd) of gas to GGCL for 11 years and six months.
This supply will be for the period between January 1, 2014 and June 30, 2025, according to an official release.
The MoU was signed by GSPC’s Managing Director Tapan Ray and GGCL’s Managing Director Sugata Sircar, and will be effective until December 31, or the signing of the relevant Gas Sales Contracts (GSC), whichever is earlier. The gas price will be determined in the relevant GSCs and is expected to be formula-based.
Sircar said of around 2.8 mmscm of gas per day used by GGCL’s customers currently, nearly half is RLNG which is largely sourced through medium-term contracts or from spot markets. “Under the MoU with GSPC, we will be able to source assured supply of 0.85 mmscm of RLNG per day for 11.5 years.”
GGCL currently distributes about 2.8 mmscmd of natural gas to about 404,000 industrial, commercial and domestic customers through its pipeline network and CNG to over 200,000 vehicles through 56 retail outlets.
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