Gail India Ltd (GAIL) has signed a contract with the the co-ventures of the Panna-Mukta-Tapti (PMT) fields comprising the consortia comprising Reliance Industries, BG Group of the UK and Oil & Natural Gas Corporation for buying the entire 17.3 million metric standard cubic meter per day.
GAIL will buy the gas at $5.73 per million British Thermal Unit for the Panna field and at $5.57 per million British Thermal Unit of the Tapti field.
They have also signed agreements regarding the supplies to consumers. GAIL has signed a term-sheet to supply, at PSC prices, 3.6 MMSCMD of natural gas to Reliance Industries Ltd and 2.13 MMSCMD of gas to Gujarat Gas Company Ltd.
GAIL has also signed a short term-term pact for 15 days to supply natural gas to Gujarat State Petroleum Corporation Ltd to supply natural gas for city gas consumers and small industries.
After this period of 15 days, GAIL will evolve a system for further supplies.
The present supply of 5 MMSCMD of gas at APM prices to power and fertiliser units will be maintained.
Apart from this, GAIL will also supply 1.5 MMSCMD to Rajasthan Rajya Vidyut Nigam Ltd and 1 MMSCMD of natural gas to 8 fertilizer units along the Hazira and HBJ pipeline and 0.9 MMSCMD to Torrent Power.