GAIL India, ONGC Ink Collaboration Deals

GAIL (India) Limited and ONGC have signed three Collaboration Agreements last Saturday to cooperate in the field of natural gas.

The agreements were signed in the presence of Shri B C Tripathi, CMD, GAIL, Shri Sudhir Vasudeva, CMD, ONGC, and other Directors and Senior officials of GAIL and ONGC.

The two companies signed a Gas Co-operation Agreement for sale and purchase of gas from existing and new finds of ONGC to GAIL initially for a period of three years with a provision of extending it further. Under the Agreement, the two companies have agreed to enhance the availablity an effective utilization of natural gas from new and upcoming fields of ONGC for supply of gas to customers through GAILs infrastructure.

The two companies also signed a Swap Agreement and Sale and Purchase Agreement for supply / sale of LNG by GAIL to ONGC for shrinkage of C2+ Extraction at Dahej: from existing GSPA quantities from PLL and purchase of equivalent domestic gas made available by ONGC from domestic sources, subject to allocation by Ministry of Petroleum and Natural Gas. This will pave the way for commissioning of C2+ Extraction plant by ONGC. Pursuant to extraction, the C2+ components shall be supplied to OPaL for manufacturing petrochemicals at Dahej SEZ.

GAIL has around 19 percent equity in OPaL and has around 38 percent marketing rights of petrochemicals produced from OPaL.

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LNG World News Staff, July 24, 2012