(ET)
GAIL will buy natural gas from domestic difficult fields and international markets and pool it with cheap domestic produce for supply to city gas distributors to meet their growing demand, as per a new guideline issued by the petroleum and natural gas ministry.
State-run GAIL is the authorized agency that oversees supplies to city gas companies. The gas supplied to city gas distributors for use in transport and homes is priced according to a government-set formula and is traditionally much cheaper than other domestic gas, which can be sold at market rates. Expanding the city gas network has increased demand for gas while production of formula-priced gas hasn’t increased and must be allocated to other sectors as well such as fertilizer and power.
