NEW DELHI: GAIL (India) Ltd has agreed to supply natural gas to Maruti Udyog Ltd’s (MUL) plant at Manesar in Haryana. The government-owned gas company plans to develop pipeline infrastructure from Gurgaon for meeting the industrial requirement in areas like Manesar, Dharuveda and Bhiwadi in the state.

Sources said natural gas would be supplied through purchase of liquefied natural gas (LNG) on spot (as and when) basis in the international market. “Besides, long-term LNG supplies can also be made from international sources,” said an official.

Suzuki Motor Corp (SMC), Maruti Udyog’s Japanese parent, had in July announced fresh investment to the tune of Rs 3,000 crore in India, over and above the Rs 6,000-crore investment SMC and Maruti had already committed to India till 2010. The fresh investment will flow into the new car plant Maruti is commissioning at Manesar and the diesel engine facility coming up alongside.

MUL’s existing plant at Gurgaon is receiving regassified LNG of around 0.22 million standard cubic metre a day (mmscmd) since March 2004 at around $3.86 per British thermal unit (Btu) ex-Dahej LNG terminal. The price is exclusive of transportation charges and taxes. Besides, GAIL is supplying MUL propane at Rs 24,000-32,000 per million tonne.