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| GAIL and RRVUNL sign Agreement for Gas based power plant |
| Announcement / Corporate Aug 07, 2009, 18:46 IST |
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GAIL (India) Limited has signed a Gas Sales and Transmission Contract (GSTC) with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL) for supply of natural gas for 160 MW gas power plant of RRVUNL at Ramgarh. GAIL also signed a Gas Sales and Purchase Agreement (GSPA) with the SGL consortium – the contractors of RJ-ON/6 block for supply of natural gas from the onland block in Rajasthan.
The Agreements were signed in Jaipur today in the presence of Shri Ashok Gehlot, Hon’ble Chief Minister, Rajasthan, Dr. Jitendra Singh, Hon’ble Energy Minister, Rajasthan, Shri Ram Lal Jat, Hon’ble Minister of State of Environment, Forests and Mines, Rajasthan, Shri R. S, Pandey, Secretary, Ministry of Petroleum and Natural Gas, Government of India, Smt. Kushal Singh, Chief Secretary, Rajasthan, Shri Shreemat Pandey, Principal Secretary (Energy) and Secretary to Hon’ble Chief Minister, Rajasthan, Dr. Govind Sharma, Principal Secretary (Petroleum and Mines) and Shri B. C. Tripathi, Chairman and Managing Director, GAIL.
The GSPA between GAIL and Focus Energy was signed by Shri J. Wason, Executive Director (Marketing), GAIL, Shri A. K. Shrivastav, GM (Marketing), ONGC and Shri P. K. Manocha, Director, Focus Energy. The GSTC between GAIL and RRUVNL was signed by Shri A. K. Mittal, GM (Jaipur Zonal Office) and Shri N. M. Mathur, Chief Engineer, RRVUNL.
The GSPA has been signed for supply of 0.95 MMSCMD of natural gas for a period of 12 years. The natural gas will be supplied primarily to the 160 MW power plant of RRVUNL at Ramgarh. The gas sourced from the RJ-ON/6 block will be supplied to RRVUNL power plant through a 10 inch diameter, 90 km. long pipeline. GAIL is laying the pipeline at an estimated investment of approximately Rs. 100 crore. The pipeline is expected to be completed by February 2010. The gas supply from the field is expected to begin by mid-April next year and total offtake quantity is expected to be available by April, 2011.
RJ/ON-6 block situated in Shahgarh of Jaiselmer district was awarded by Government of India under NELP and Production Sharing contract was signed in June 1998. iServices Investments Ltd. has 45.5 percent participating interest, whereas ONGC has 30 percent, Newbury Oil Company Ltd. has 17.5 percent and Focus Energy has 7 percent participating interest in the block. Focus Energy is the Operator of the block.
GAIL is a Navratna Public Sector Undertaking under the Ministry of Petroleum and Natural Gas. 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. 28,000 crore. When these pipelines are commissioned, the capacity is expected to increase to around 300 MMSCMD.
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