Under the twelve year agreement, GAIL will source gas from SGL’s RJ-ON/6 block to supply RRVUNL’s 160 MW power plant at Ramgarh. The power plant currently has a capacity of 110 MW, and RRVUNL is expanding the project, building two new units which are expected to add a capacity of 160 MW.

GAIL has said that it is constructing a 90 km, 10 inch diameter pipeline from SGL’s licence to supply the expanded power plant with 0.95 MMcm/d of gas.

The pipeline is expected to be completed by February 2010, ready for supply from the field to begin by April 2010.

SGL is a joint venture between iServices Investments, Oil and Natural Gas Corporation, Newbury Oil Company and Focus Energy as operator. The RJ-ON/6 block is located in Shahgarh, Jaiselmer district in the west of India.