GAIL-GSPC issue to be resolved soon: Patel

The issue between Gas Authority of India Ltd (GAIL) and Gujarat State Petroleum Corporation (GSPC) for marketing of gas from Panna Mukta Tapti (PMT) gas fields to industries in Gujarat will be resolved shortly. This was stated by Minister of State for Petroleum and Natural Gas Dinsha Patel who was in the the state to attend a function by ONGC. In a meeting schedulded early next month between GAIL, GSPC and government officials, this issue will be resolved, he added.

The agreement between the GSPC and Centre before GAIL was authorised as the sole marketing agency for all the gas produced from the Panna Mukta Tapti (PMT) was to to avail a little over 3 million standard cubic meter per day (mscmd) gas per day. About three months ago, the agreement between Centre and GSPC expired.

GSPC got momentary reprive as it has been entering into agreements with GAIL lasting for a couple of weeks or so after which the agreement is revised. The gas marketing company however has been supplying about 1.2 mscmd gas per day, almost 60 per cent less than what it supplied earlier. GSPC has to buy gas in spot from companies like Shell and Petronet LNG to meet the industries' requirement in Gujarat, an official of GSPC said.

“I had a word with chief minister Narendra Modi on this issue. We will ensure that the industries of Gujarat including many small and medium scale industries are not affected due to unavailibility of gas,” Patel told Business Standard.