GAIL - RGTIL sign Gas Transmission Agreements

Gail India Ltd has announced that the Company and Reliance Gas Transportation Infrastructure Ltd (RGTIL) have signed an Agreement for Transmission of natural gas from the Krishna Godavari (KG) basin.

The Agreement was signed in New Delhi by Shri. B C Tripathi, Director (Marketing), GAIL and Shri. R K Dhadda, Director, RGTIL in the presence of Shri. M R Hingnikar, Director (HR), Shri. Santosh Kumar, Director (Projects) and Shri. A K Purwaha, Director (BD) from GAIL along with other senior officials from both the Companies.

The Transmission Agreement provides for transportation of natural gas from the exploration block located in the Krishna-Godavari (KG) Basin in the east coast of India through GAIL's network and for booking of capacity by GAIL in RGTIL's East-West pipeline. The GTA is a framework agreement which provides for booking of capacity through execution of Capacity Tranche agreements (CTA).

GAIL currently has a network of about 6700 km with transmission capacity of about 150 MMSCMD. The utilization of the pipeline asset will be increased by such arrangement. RGTIL is laying a 48 inch (diameter), 1400 km long East-West pipeline from Kakinada to Gujarat.

The Gas Transmission Agreement (GTA) is a sequel to the Memorandum of Understanding (M0U) signed between the two Companies in March this year for cooperation in identified areas in natural gas sector. The MoU envisaged that the two Companies would formalize the arrangements for cooperation through Agreements and contracts in specific areas. The GTA will be followed by specific contracts.