|
| GAIL signs Gas Sale Contract for PY-1 Gas |
| Announcement / Corporate Sep 22, 2009, 19:24 IST |
|
GAIL signed two contracts for sourcing of natural gas from PY-1 field for supply to a power plant in Tamil Nadu here. A long term Gas Sale Contract (GSC) for the PY-1 gas supplies was signed between GAIL and HOEC. GAIL also entered into a contract in downstream for the supply of PY-1 gas with PPN Power Generating Company Private Limited at Pillaiperumalnallur in Nagapattinam District of Tamil Nadu. Shri J Wason, Executive Director (Marketing), GAIL, Shri Manish Maheshwari, Joint Managing Director, HOEC and Shri S. Narayanan, Managing Director, PPN Power signed the Contracts. Shri B C Tripathi, Chairman and Managing Director, GAIL, Shri R K Goel, Director (Finance), Shri A K Purwaha, Director (BD), Shri R D Goyal, Director (Projects), Shri S L Raina, Director (HR), GAIL and other senior officials of GAIL, HOEC and PPN Power were present on the occasion.
Speaking on the occasion, Shri B C Tripathi, CMD, GAIL described the signing of Contracts as an important occasion and hoped that this development will mark the beginning of a beneficial relationship for all parties and bring value to them. He described the development as a new beginning for future collaborations. He reiterated GAIL’s commitment for the best services to its customers..
The GSC between GAIL and HOEC provides for a primary term of 15 years which can be extended on mutually agreed terms. Gas supplies are expected to commence shortly. For the first six years, gas supplies are expected in the range of 51,000 mmbtu per day. GAIL is also entitled to receive additional gas, if any, from the field as per the terms of the Contract.
PY-1 field was awarded under pre-NELP round and Production Sharing Contract (PSC) was signed between the Government of India and PY-1 consortium in October 1995. The field covers an area of about 75 square kilometres and is situated in offshore Cauvery Basin. Presently, HOEC is having 100% participating interest in the said field.
Sourcing has been identified as one of the focus area for growth by GAIL. GAIL has entered into sourcing arrangements with SGL Consortium for gas available from RJ-ON/6 block in Rajasthan for a quantity of approx. 31000 MMBTU per day (0.95 MMSCMD) of gas in August 2009. GAIL has also entered into a long term contract with PMT consortium for supply of entire production of Panna, Mukta and Tapti fields, wherein the gas supplies range between 15 to 17 MMSCMD.
About GAIL (India) Limited
GAIL today owns and operates a network of over 7,100 km of Natural Gas high pressure trunk pipeline with a capacity to carry 155 MMSCMD of natural gas across the country. Today, the major focus for GAIL is to maintain its dominant position in the gas business, especially the transmission segment and continue the relationship with existing customers and also add more customers. Therefore, during the 11th plan period, GAIL would build 5000 km of pipelines at an estimated investment of Rs. 20,000 crore. When these pipelines are commissioned, the capacity is expected to increase to around 300 MMSCMD in 2011.
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
