Reliance and Oil India sign GSA

Vol 4, PW 19 (25 Oct 00) News in Brief
     

Oil India and Reliance Assam Petrochemicals have this month signed a landmark gas supply agreement for the supply of 5m cm/d of gas over 15 years to a proposed cracker project in Assam, in a ceremony attended by oil minister Ram Naik and Assam chief minister Prafulla Kumar Mahanta.

Construction of the cracker on a 1,000-acre site at Lepetkata in Dibrugarh district is slated to begin on January 1st next year and should take 44 months to complete. Under the agreement, Oil India will sell gas to Reliance at a rate of Rs600 ($13.33) per thousand cubic metres against the market rate of Rs1,700 ($37.70).

Reliance intends to sign an additional gas supply agreement with ONGC.