New Delhi: Reliance Industries and GAIL have signed a sale and purchase agreement (GSPA) and a gas transportation agreement (GTA).

This agreement comes in the backdrop of an understanding reached between the two companies earlier this year for co-operation in gas sector. The agreement will enable RIL to use GAIL''s pipeline network in Andhra Pradesh, Madhya Pradesh and other States, GAIL would get to market a portion of RIL''s gas from the Krishna Godavari Basin (D6 block).

Sources said that the GTA enables Reliance to book capacity in GAIL''s pipeline network - KG Basin, Dahej Uran Pipeline Project and the Dabhol-Panvel, Hazira-Bijapur-Jagdishpur and Dahej-Vijaipur Pipelines.

The GSPA also provides GAIL the right to market a portion of RIL''s gas from the KG Basin. To begin with, RIL will supply GAIL with five million standard cubic metres per day of gas for marketing to consumers in North India.