GAIL to Ink Gas Supply Deal With Pakistan

GAIL India is likely to sign a deal with a Pakistani firm for export of natural gas through a pipeline, according to Business Standard newspaper.

The pipeline, which will be 110 km long, is expected to start from Jalandhar in the state of Punjab.

"GAIL would enter into the necessary contract for export of regassified-LNG with its Pakistani counterpart based on import of LNG at Petronet's Dahej (import facility in Gujarat) or Dabhol LNG terminal (in Maharashtra)," Minister of State for Petroleum and Natural Gas Panabaaka Lakshmi has said.    

The quantity of gas exports initially is likely to be 1-1.5 million tonnes of LNG, Business Standard said. Pricing and other commercial agreements are being negotiated.

Oil Ministry sources told the newspaper that the delivered price of gas will be up to $22.3 per million British thermal unit after including transportation charges and all taxes and duties.