Gujarat Gas Company jumps on inking MoU with GSPC for long term gas supply deal

Gujarat Gas Company and Gujarat State Petroleum Corporation (GSPC) have entered into a Memorandum of Understanding (MoU) on the September 03, 2013 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 01, 2014 to June 30, 2025.

Price of gas will be determined in the relevant Gas Sales Contracts (GSC) and it is expected to be formula based. The MoU is effective till December 31, 2013 or the signing of the relevant GSCs, whichever is earlier.

Gujarat Gas, a 65.12 per cent subsidiary of BG Asia, is India’s largest private sector natural gas distribution company in terms of sales volumes, with operations in Gujarat. The company distributes natural gas to domestic, commercial and industrial consumers, and compressed natural gas as automobile fuel, in the cities of Surat, Ankleshwar, Bharuch, and surrounding areas.