ONGC inks deal with GAIL for gas supply

New Delhi, July 24 (IANS) The government-owned Oil and Natural Gas Corporation (ONGC) has singed an agreement with Gas Authority of India Ltd (GAIL) to supply gas to customers through GAIL infrastructure.

The two state-run companies have signed a "gas co-operation agreement" for sale and purchase of gas from existing and new finds of ONGC to GAIL initially for a period of three years.

GAIL said in a statement Tuesday that the deal is meant initially for three years and there is provision for extending it further.

Under the agreement, the two companies have agreed to enhance the availability and effective utilisation of natural gas from new and upcoming fields of ONGC for supply of gas to customers through GAIL's infrastructure.

The two firms have also signed "swap agreement and sale and purchase agreement".