Gujarat Gas rises 3% on signing contract with GAIL

The company will purchase gas from the Panna-Mukta and Tapti fields

Gujarat Gas Company is trading higher by around 3% at Rs 334 in otherwise subdued market, after has executed a fully termed gas sales and transportation contract (GSTC) with GAIL (India) Ltd (GAIL) for the purchase of gas from the Panna-Mukta and Tapti fields.

“The GSTC supersedes the previously executed term sheet of 31 March 2008, pursuant to which PMT gas has been sold to GGCL to date," Gujarat Gas Company said in a filing with the Bombay Stock Exchange (BSE).

The GSTC will now constitute the entire agreement between the parties in respect of the sale, purchase and transportation of PMT gas up to 2.13 mmscmd depending on the production from the PMT fields, it added.

A combined around 52,000 shares have changed hands on the counter in morning deals.