The Oil and Natural Gas Corporation (ONGC) has signed gas sale agreements or MoU with GAIL India and Assam Gas Company Ltd (AGCL) in a bid to monetise its upcoming field at Khubal in North Tripura district, an official said on Saturday.

According to the agreement, GAIL and AGCL would each receive 50,000 standard cubic metres of gas from the Khubal Gas Gathering Station (GGS).

Khubal will be ONGC's tenth producing field in Tripura once it begins production. Khubal GGS will have a capacity of 0.44 MMSCMD (4,40,000 standard cubic metres) of gas and that building has already begun, the official said.

"It is a historic event not just for ONGC, GAIL, and AGCL, but also for the people of the Northeast, as it means more gas will make its way into industry and people's homes, positively influencing living conditions," ONGC Tripura asset manager Tarun Malik said.

"The GSA for gas produced from Khubal wells represents more than just another step in ONGC and GAIL's relationship. It implies a greater integration of the region with the rest of the country "GAIL's CGM-zonal leader, R Choudhury, he said.

GSA is a significant milestone in the lifecycle of any gas business, indicating commerciality for producers such as ONGC while also guaranteeing the product reaches end customers via marketing and transportation intermediates such as GAIL and AGCL.

Officials expect the Khubal gas field to begin production in 2024, coinciding with the completion of the Indra Danush Gas Grid Line (IGGL) pipeline, a key and large infrastructure project for the Northeast region's gas sector.

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