GAIL has entered into an agreement with Oil and Natural Gas Corporation, under which it will exclusively purchase and market the natural gas produced from the latter’s various fields during the next three years, said a company release.
The two companies also reached an understanding in swapping gas available to both companies, to optimise logistics and cost. GAIL currently markets 50 million standard cubic metres per day of gas produced by ONGC.
An understanding has also been reached for marketing of a portion of petrochemical products of ONGC Petro Additions Ltd (OPaL) by GAIL. OPaL is the special purpose vehicle formed by ONGC for setting up a Rs19,535-crore petrochemical complex at the Dahej Special Economic Zone in Gujarat.
GAIL and ONGC would also explore the possibility of setting up a downstream unit using butadiene, a by-product from OPaL, to GAIL for manufacture of value-added products.
