GSPL inks natural gas transportation pact with Reliance

AHMEDABAD: Gujarat State Petronet Ltd (GSPL) on Saturday said it will supply natural gas to Reliance Industries Ltd's (RIL) refinery and petrochemical complex in Jamnagar for which the two companies have signed an agreement.

As per the 15-year deal, GSPL will transport 11 million standard cubic meters per day (MSCMD) of natural gas from Bhadbhut in Bharuch to RIL's refinery and petrochemical complex in Jamnagar, the company said in a release here.

RIL has an option to increase the volumes of gas up to 14 MSCMD.

The transportation of gas is expected to begin in the second quarter of 2008, the release stated.

To facilitate the transportation of gas, the Gujarat government-owned GSPL will use its existing pipelines and develop new ones between Bharuch to Hadala and Rajkot to Jamnagar.

GSPL, a subsidiary of Gujarat State Petroleum Corporation (GSPC) is currently engaged in developing a gas-grid across the state of Gujarat.

In a similar agreement, GSPC will supply 3.5 MSCMD of natural gas to RGTIL (Reliance Gas Transmission and Infrastructure Ltd) from its gas fields in Krishna-Godavari basin at Kakinanda in Andhra Pradesh to Gujarat.

RGTIL is laying down a pipeline between Kakinada and Bharuch for the transportation of gas, which is expected to commence as soon as GSPC starts production from its KG basin from mid-2009, the release said.

GSPC had discovered natural gas in the KG basin about two years ago.

As per this 15-year agreement, GSPC has an option to increase the volumes of gas up to 11 MSCMD, the release added.