Mumbai, March 31: Reliance Industries (RIL) and Gujarat State Petronet (GSPL) today entered into an agreement, under which the entities will use each other’s pipeline network to transport gas.

RIL will use the pipeline network of GSPL to transport 11 million metric standard cubic metre per day (mmscmd) of natural gas from Bhadbhut in Bharuch to its refinery and petrochemical complex in Jamnagar. In a press statement issued today, RIL said the pact allows it an option to increase the volume to 14 mmscmd.

The company added that it would transport a portion of its KG basin gas from Kakinada through its east-west pipeline and deliver it to GSPL at Bharuch. GSPL will then transport it to the Jamnagar complex.

For transportation of gas, GSPL will use its existing pipeline and develop new ones between Bharuch and Hadala, and Rajkot and Jamnagar. The transportation of gas shall commence in the second quarter of 2008. The agreement is valid for 15 years, RIL said.

GSPL has signed a gas transportation agreement with Reliance Gas Transmission and Infrastructure to transport 3.5 mmscmd of natural gas from its KG basin discovery at Kakinada in Andhra Pradesh to Gujarat. According to this agreement, GSPC has an option to increase the volume up to 11 mmscmd.

To transport gas from Kakinada to Gujarat, RGTIL is developing a pipeline between Kakinada and Bharuch.

Reliance is laying an east-west pipeline to transport gas from its field off the Andhra coast to Gujarat and is also planning a coastal link from Andhra Pradesh to the south and another to Haldia.

The transportation of gas, RIL officials said, will start as soon as GSPC starts production of gas from the KG basin. The agreement is also valid for 15 years.

P.M.S. Prasad, president and CEO of the petroleum business of RIL, signed the agreements with D.J. Pandian, managing director of GSPL, in the presence of Saurabhbhai Patel, minister of energy and petrochemicals, Gujarat.