Mumbai: State-run gas transporter GAIL (India) Ltd has signed a deal with a Reliance Group firm to transport gas from Reliance Industries’ fields off India’s east coast, GAIL said.
Under the deal, GAIL would also buy capacity in Reliance Gas Transportation Infrastructure Ltd’s 1,400-km (870-mile) pipeline, which is under construction and due to connect Andhra Pradesh and Gujarat, GAIL said in a statement.
The statement, released at the weekend, said with the gas transmission deal finalized, the two firms would now sign specific contracts, but did not give further details.
GAIL and Reliance Industries agreed in March to explore options jointly to transport and sell Reliance’s gas from its deep-sea fields in the Krishna Godavari (KG) basin and set up city gas distribution networks across Indian cities.
Reliance, which discovered India’s largest gas field in the KG basin in 2002, is spending $5.2 billion to develop and $3.5 billion to maintain production from its gas fields.
Shares in GAIL rose to a life high at Rs501.95 in early trade and were trading 5.1% higher at Rs494.95 in the afternoon in a Mumbai market down 0.2%.
However, Reliance Industries shares were down 0.6% at Rs2,824.45.