Shirish Nadkarni
OGJ correspondent
MUMBAI, July 9 -- Gas Authority of India Ltd. (GAIL) has signed a natural gas sale and transportation agreement with the PY-1 consortium, comprising Mosbacher India LLC and Hindustan Oil Exploration Co., both of Houston.
Under the terms of the agreement, GAIL is to take delivery of gas from the PY-1 consortium's offshore facilities and transport the gas condensate through a pipeline to its facilities onshore in Tamil Nadu.
PY-1, which is the first offshore natural gas field being developed in the Cauvery basin, lies 18 km offshore from Porto Novo. It has estimated gas reserves of more than 200 bcf.
GAIL will be laying its first offshore pipeline, to begin in the next 3 years, connecting one of the major independent beneficiaries in the state, the Pillai Perumal Nellore power plant.