GAIL wins rights to market PMT gas

State gas utility GAIL India has been awarded the rights to market the entire gas output from Panna-Mukta-Tapti fields jointly operated by Reliance Industries, British Gas and ONGC from April 1, 2008.

GAIL, which currently markets 4.8 million standard cubic metres per day of gas from the fields lying in western offshore, will now get to market the entire output of 15.5 mmscmd from PMT fields, a move that will boost the company's annual revenue by about Rs 5,000 crore (Rs 50 billion), official sources said.

Currently, ONGC, Reliance and BG, in proportion to their equity, market about 10 mmscmd of gas.

Sources said GAIL, which currently does not get a marketing margin on PMT gas, will get to charge $0.12 per million British thermal unit on the entire gas volume from April 1, 2008.