MUMBAI: Great Eastern Energy Corporation Ltd has entered into a long term gas sale agreement with Mackeil Ispat & Forging Ltd, a steel company based in Durgapur, West Bengal, with sales commencing on June 30, 2009, for a period of 25 years.
Under the GSA, Great Eastern will supply 1.57 MMSCFD (44,500 SCMD) of gas to Mackeil Ispat after the first 12 months. During the first 12 months, supply will gradually increase over every three months to reach this level. The gas will initially be delivered in cascades and later supply the gas through its pipeline to Durgapur once it’s complete later this year.
"The agreement is a further step change as we move from being a development business to one focused on both development and also gas sales. It also reflects the progress being made in the laying of Great Eastern's third major distribution pipeline," Prashant Modi, President & COO of Great Eastern, said.
