Gujarat Gas, GSPC ink supply MoU

Gujarat Gas Company Ltd (GGCL) and Gujarat State Petroleum Corporation Ltd (GSPC) signed a memorandum of understanding (MoU) for a long-term gas supply deal under which GSPC will supply 0.85 million standard cubic metres per day (mscmd) of gas to GGCL for 11 years and six months. The MoU was signed by GSPC’s Managing Director Tapan Ray and GGCL’s MD Sugata Sircar, and will be effective until December, 31, 2013 or the signing of the relevant Gas Sales Contracts (GSC), whichever is earlier. Price of the gas will be determined in the relevant GSCs and it is expected to be formula-based. Sircar said out of around 2.8 mscm of gas per day used by GGCL’s customers currently, nearly 50 per cent is RLNG which is largely sourced through medium-term contracts or from spot markets. “Under the MoU with GSPC, we will be able to source assured supply of 0.85 mscm of RLNG per day for 11.5 years.”