GAIL and Reliance Gas Transportation Infrastructure Ltd (RGTIL) have signed an agreement for transmission of natural gas from the Krishna Godavari (KG) basin.
The transmission agreement provides for transportation of natural gas from the exploration block located in the 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 framework agreement provides for booking of capacity through execution of capacity tranche agreements (CTA).
GAIL currently has a network of about 6700km with transmission capacity of about 150 MMSCMD. The utilisation of the pipeline asset will be increased by such arrangement. RGTIL is laying a 48 inch diametre, 1400km long East-West pipeline from Kakinada to Gujarat.
The gas transmission agreement is a sequel to the Memorandum of Understanding signed between the two in March this year for cooperation in identified areas in the natural gas sector. The agreement will be followed by specific contracts.