GAIL, India's largest gas transmission and marketing company, has announced that it has inked two contracts.

As per sources, the company has signed these contracts for sourcing natural gas from PY-1 field for supply to a power plant located in Tamil Nadu.

The sources further informed that a long term gas sale contract (GSC) for the PY-1 gas supplies was clinched between GAIL and Hindustan Oil Exploration Company (HOEC).

GAIL also inked a pact in downstream with PPN Power Generating Company for the supply of PY-1 gas in Tamil Nadu.

The GSC between Gail and HOEC provides for a primary term of 15 years which can be extended on mutually agreed terms.

At present, GAIL owns and functions a network of 7,100 km of natural gas high pressure trunk pipeline. During the current five year plan, it is pumping Rs 20,000 crore to develop 5000 km of pipeline.