INDIA BUSINESS WORLD OCTOBER (1^st - 20^th) 2007
The Month that was ...

GAIL SIGNS DEAL WITH PPCL FOR GAS SUPPLY

Gail India has signed a gas sales agreement (GSA) with Pragati Power Corporation (PPCL) to supply 2 mmscmd of re-gassified liquefied natural gas (R-LNG) for 1500 mw combined cycle gas turbine power project being set up by Pragati Power Corporation Ltd (PPCL) at Bawana. The fuel supply will commence from October 2009 and the validity of this agreement will be till the year 2024. The power plant is expected to be fully commissioned by October 2010 to supply power to Delhi. "Gas will be sourced from Petronet LNG and Gail will be transporting it to PPCL for which a MoU has already been signed with BPCL and IOC. Further, to bring gas from Dadri to Bawana, pipeline with two compressors will be laid. A loop line will also be laid in the GREP pipeline system of Gail. It will involve Rs 5,000-crore investment and this network will supply gas to other customers also. Gail is confident to lay this pipeline, synchronising with the power plant" Gail chairman and managing director UD Choubey said in a statement.