GAIL signs contract for Panna-Mukta-Tapti gas

GAIL has signed a contract with the producers of gas from the consortium of RIL, the BG Group and ONGC for buying the entire quantity of 17.3 million metric standard cubic metre per day (MMSCMD) gas produced from the Panna-Mukta-Tapti (PMT) fields. GAIL will buy the gas at $5.73 per million British thermal unit (mBtu) for Panna field and $5.57 per mBtu of the Tapti field.
Subsequent agreements were also reached regarding the supplies to consumers. GAIL signed a term-sheet to supply, 3.6 MMSCMD of natural gas to RIL and 2.13 MMSCMD of gas to Gujarat Gas Company. It has also inked a short-term term-sheet for 15 days with Gujarat State Petroleum Corporation (GSPC) for the supply of natural gas.

GAIL has signed the contracts to purchase and sell the entire volume of PMT gas. Marketing the entire 17 million cubic meters per day (mcmd) of gas from the PMT fields will increase GAIL’s marketing margin by Rs 100 crore annually, while transportation revenues will go up by Rs 450 crore annually.