Gujarat Gas to source degasified LNG from BG India
21 Mar 2011
Gujarat Gas Company Ltd has entered into an agreement with BG India Energy Solutions Private Limited (BGIESPL) for the purchase 1.7 mmscmd of degasified liquefied natural gas (RLNG).
Gujarat Gas will purchase 0.7 mmscmd of RLNG for the period 1 April 2011 to 30 June 2011 and 1.0 mmscmd of RLNG for the period from 1 July 2011 to 31 December 2011, on a firm basis, the company said in a filing with the Bombay Stock Exchange (BSE).
The agreement will make available higher quantities of RLNG helping the company to maintain supplies to the company's markets.
The agreement will also help the company compensate for the reduction in quantity under the existing 39 months firm RLNG contract with BGIESPL, from 0.5 mmscmd to 0.2 mmscmd effective 1 July 2011 in accordance with the contractual terms therein, according to the filing.
Gujarat Gas Company Ltd is India's largest private sector company in the natural gas transmission and distribution business.
Incorporated in 1980, Gujarat Gas currently supplies natural gas to 300,000 domestic, commercial and industrial consumers and serves over 126,000 compressed natural gas (CNG) users.
GGCL has a pipeline network of 3,500 km, spread across various districts across Gujarat, including Surat, Bharuch and Valsad.