Business Daily from THE HINDU group of publications
Friday, Aug 04, 2006
Business Daily from THE HINDU group of publications Friday, Aug 04, 2006 |
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Industry & Economy
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Petroleum
Richa Mishra
Gas offer There is a large demand for gas by existing customers of GAIL, particularly along Dahej-Vijaipur pipeline and Hazira-Vijaipur-Jagdishpur pipeline. Besides, the Delhi Government has also approached GAIL in connection with the need for augmenting the power supply to meet the present demand as well as the demand during the 2010 Commonwealth Games.
New Delhi , Aug 3 Even as Reliance Industries Ltd (RIL) and Reliance Natural Resources Ltd (RNRL) are yet to sort out the gas price for the finds in the KG Basin, GAIL (India) Ltd has offered to buy the entire volume of gas finds from Oil & Natural Gas Corporation (ONGC) in the region at a market related price. GAIL has requested the ONGC to earmark maximum quantity of natural gas to it at market price, that is, the prevailing price at the time of delivery. Currently, the market price for a long-term contract stands at $4.75 per million British thermal unit (mmBtu). The contract has been inked between GAIL and the joint venture partners of Panna, Mukta and Tapti fields.
Huge Demand
According to sources, GAIL has said in a letter to ONGC that it was ready to purchase the entire volume of gas available from ONGC fields for supply to its consumers at a market related price through GAIL's gas distribution network. There is a large demand for gas by existing customers of GAIL, particularly along Dahej-Vijaipur pipeline and Hazira-Vijaipur-Jagdishpur pipeline. Besides, the Delhi Government has also approached GAIL in connection with the need for augmenting the power supply to meet the present demand as well as the demand during the 2010 Commonwealth Games. In fact, at a meeting between the Delhi Government and the Ministry of Petroleum and Natural Gas in May this year, it was decided that GAIL would assist the State in sourcing 1.7 million standard cubic metre per day (MMSCMD) of gas for supply to 350-MW Pragati-II power plant from 2007-08 as well as explore the availability of five MMSCMD of gas for supply to the proposed power plant at Bawana.
More Stories on : Petroleum | GAIL (India) Ltd | Oil & Natural Gas Corporation Ltd
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