Gujarat Gas and GSPC ink long term gas supply deal

Gujarat Gas Company Limited (GGCL) and Gujarat State Petroleum Corporation Limited (GSPC) have entered into a Memorandum of Understanding (MoU) for a long-term gas supply deal. As per the MoU, GSPC has agreed to supply 0.85 mmscm of gas per day to GGCL from January 1st 2014 to June 30th 2025.
The MoU was signed by GSPC’s Managing Director, Tapan Ray, and GGCL’s Managing Director, Sugata Sircar, at Gandhinagar on September 3rd. The MoU is effective till the December 31st or the signing of the relevant gas sales contracts (GSC), whichever is earlier. Price of gas will be determined in the relevant GSCs and it is expected to be formula-based.
Speaking on the signing of this MoU, Mr Sircar said, “The signing of this MoU is an important step towards securing long term gas supplies for industrial, domestic, commercial and CNG customers of Gujarat Gas. Out of around 2.8 mmscm of gas per day used by GGCL’s customers currently, nearly 50% 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 mmscm of RLNG per day for 11.5 years.”
GGCL currently distributes approximately 2.8 mmscmd of natural gas.