State-run gas firm Gas Authority of India Ltd on Tuesday said it has signed an agreement with Mosbacher India and Hindustan Oil Exploration Co Ltd for sale and transportation of gas produced from PY-1 fields in offshore Cauvery basin.

B S Negi, director (planning) inked the agreement for Gail while Robert Mosbacher and Ajit Kapadia signed for MIL and HOEC respectively, a company statement said in New Delhi.

As per the agreement, Gail will take delivery of natural gas from the consortium and transport it through a pipeline from the offshore facility to onshore facilities in Tamil Nadu. Gail will construct the offshore pipeline to transport the gas.

PY-1, the first Cauvery Basin offshore gas field being developed, is located at a distance of 18-kms from the shore. The pipeline would commence operations within a span of 2-3 years.

MLC and HOEC have 54 and 46 per cent interest in the PY-1 fields. These fields were awarded by the government to the consortium in the pre-NELP (New Exploration Licensing Policy) round.

The PY-1 field is predominantly a gas field with an estimated gas reserve in excess of 200 billion cubic feet.