Gujarat Gas signs agreement for sale of gas

14 December 2005

Gujarat Gas Company Ltd has signed an agreement to supply 3.50-lakh standard cubic meters of gas per day (scmd) to a Hazira-based buyer for the next one year. The suply will commence from January 1, 2006. Gujarat Gas says that the quantity could be increased up to 4.50-lakh scmd if required.

The company''s wholly owned subsidiary Gujarat Gas Trading Company Ltd (GTCL) had signed a similar agreement to supply 3-lakh standard cubic meters per day (scmd) of gas.

The company recently signed an agreement to source 7-lakh scmd of gas per day from the the Panna-Mukta and Tapi gas fields for three years.

B S Shantharaju, managing director, said, "We are on track to continue our leadership position in the City Gas Distribution. The company continues to invest in growing the business with more than Rs1,600 million in network upgradation, expansion and CNG stations during the current year.

"It is also worth noting that in the first nine months of the current year, we have signed new customers with a total volume in excess of 3,80,000 scmd as against 3,78,000 scmd for the entire last year. This will help us continue to grow the business."

For the quarter ended September 30, 2005 the Gujarat Gas posted a profit after tax of Rs24.44 crore up from Rs15.92 crore for the quarter ended September 30, 2004.