The cost of KG-D6 gas supplies will be around INR12 per cubic meter compared with INR13.4 per cubic meter of liquefied natural gas (LNG).

Gas deliveries will begin from next week and the supply volume will increase to 0.5 million standard cubic meters a day by March 2010.

The gas supply price, after including taxes and transportation charges along with those paid to GAIL (India) Limited, will be $6.7-6.8 per million British thermal unit compared with LNG price of $7.25 per mmBtu.

IGL has also entered into an gas transportation agreement (GTA) with Reliance Gas Transportation Infrastructure.