GAIL India has inked a Gas Sales and Purchase Agreement with Reliance Industries to provide gas from the latter’s oil mines in the KG basin in the eastern offshore.
The contract foresees procure of 2.6mmscmd per day of gas from RIL’s KG-D6 mines at government standard cost of $4.2 per mBtu. Gas provision is likely to start from 3rd September.
The LPG division has been set at the 3rd spot in the government’s precedence listing for KG-6 gas allotment. Till now, RIL has constricted gas provision to 15 fertilizer firms, 19 power factories and 3 steel producers.
Gas production from the KG-6 mines is presently hooked at around 37mmscmd, out of which nearly 50% moves to gas-based power factories.