It is reported that GAIL has reportedly inked a Gas Sales and Transmission Contract with Rajasthan Rajya Vidyut Utpadan Nigam Ltd for supply of natural gas for 160 MW gas power plant of RRVUNL at Ramgarh.

GAIL has also signed a Gas Sales and Purchase Agreement with the SGL consortium the contractors of RJ-ON/6 block for supply of natural gas from the on land block in Rajasthan.

The GSPA has been signed for supply of 0.95 mmscmd of natural gas for a period of 12 years. The natural gas will be supplied primarily to the 160 MW power plant of RRVUNL at Ramgarh. The gas sourced from the RJ-ON/6 block will be supplied to RRVUNL power plant through a 10 inch diameter, 90 kilometer and long pipeline.

GAIL is in the process of laying the pipeline at an estimated cost of INR 100 crore. The pipeline is slated to be completed by February 2010. The gas supply from the field is expected to begin by mid April 2010 and total offtake quantity is likely to be available by April 2011.

RJ/ON-6 block situated in Shahgarh of Jaiselmer district was awarded by Government of India under NELP and Production Sharing contract was signed in June 1998. iServices Investments owns 45.5% stake whereas ONGC has 30%, Newbury Oil Company has 17.5% and Focus Energy, the operator, owns 7% stake in the block.

(Sourced from Project Today)