Gas sale agreement imminent for GAIL and ONGC

Vol 5, PW 22 (19 Dec 01) News in Brief

One of GAIL's main worries for the period after 31st March was whether ONGC will continue to sell it gas.

That worry is now over. GAIL chairman Proshanto Banerjee and ONGC chairman Subir Raha met about a fortnight ago and achieved a breakthrough in this long-pending issue.

PETROWATCH was told both companies will sign a Gas Sales Purchase Agreement based on an international model. "The agreement is expected to be signed in February or March," we are told.

ONGC has retained Ernst & Young to draft globally accepted model crude and gas sales and purchase agreements for the post-APM market scenario.