Commodity Online

NEW DELHI: The state run GAIL has signed a deal with the consortium of the Panna Mukta and Tapti gas fields (PMT) for marketing the natural gas produced from the PMT field.

The consortium include Reliance Industries, BG Group of UK and Oil and Natural Gas Corporation, who are in exploration at PMT. GAIL signed the contract on Tuesday for buying the entire 17 million standard cubic meters per day of gas produced from the fields.

After that it also signed contracts for selling the gas to consumers including RIL at the government approved price of $5.7 per million British thermal unit.

GAIL, which was the official marketing agency of the PMT gas till 2005 when Petroleum Ministry gave the rights to the field operators for an interim period, also contracted RIL for sale of 3.6 mmscmd of gas to its petrochemical plants.

About 5 mmscmd gas would be supplied to power and fertiliser plants, while 2.13 mmscmd gas would be sold to BG's subsidiary, Gujarat Gas Co Ltd, for its city gas distribution projects in Gujarat and other consumers.

Another 1.1 mmscmd gas would be given to Gujarat State Petroleum Corporation (GSPC) for 15 days to meet the requirement of small consumers in Gujarat. After this period, GAIL will takeover the supplies to these consumers.