Gujarat Petronet selects contractor for gas trading exchange

Vol 8, PW 10 (11 Aug 04) News in Brief

Gujarat State Petronet has moved a step closer to building Indias first natural gas exchange terminal in Mora.

We learn Ahmedabad-based Kalpataru Power Transmission has emerged as lowest bidder for the construction contract. GSPL refuses to disclose the bid amount but insiders tell us the company has set aside Rs12cr ($2.6m) for construction of the terminal.

Larsen & Toubro and Engineering Projects India also submitted bids. We expect to start construction within three months from when the contract is formally awarded, GSPL tells PETROWATCH.

A Letter of Intent will be issued to Kalpataru later this month after the GSPL board clears the proposal. GSPL is talking to Mumbais National Commodities and Derivatives Exchange to set up the spot gas market.

Gas producers ONGC, British Gas, Cairn Energy, Hindustan Oil Exploration Company, Niko Resources and Gujarat Petroleum are expected to benefit from the exchange.