Delhi: Reliance Industries and GAIL have signed a
sale and purchase agreement (GSPA) and a gas transportation
agreement comes in the backdrop of an understanding reached
between the two companies earlier this year for co-operation
in gas sector. The agreement will enable RIL to use GAIL''s
pipeline network in Andhra Pradesh, Madhya Pradesh and
other States, GAIL would get to market a portion of RIL''s
gas from the Krishna Godavari Basin (D6 block).
said that the GTA enables Reliance to book capacity in
GAIL''s pipeline network - KG Basin, Dahej Uran Pipeline
Project and the Dabhol-Panvel, Hazira-Bijapur-Jagdishpur
and Dahej-Vijaipur Pipelines.
GSPA also provides GAIL the right to market a portion
of RIL''s gas from the KG Basin. To begin with, RIL will
supply GAIL with five million standard cubic metres per
day of gas for marketing to consumers in North India.