Reliance Industries Limited will use state-run GAIL India Ltd's natural gas pipeline network for taking gas from its giant KG Basin field.
Besides using GAIL infrastructure, RIL is also likely to sell a part of the 80 million standard cubic metres per day of gas from the KG basin field to GAIL, a company official said.
The two companies signed
an infrastructure sharing and marketing agreement on Thursday.
Reliance Industries Chief Executive Officer (oil and gas) P M S Prasad and GAIL Director Finance R K Goel signed the agreement in New Delhi.
RIL is laying a 1,400 km pipleine from Kakinada to Ahmedabad for taking gas from the east coast to consumption centres in the West.
For taking the gas to the north, RIL will use GAIL's trunk pipeline network from Maharashtra to Uttar Pradesh, the official said. RIL also plans to lay a pipeline from Kakinada to Haldia in West Bengal and may share a part of it with GAIL.