Come April and Gujarat, one of the most industrialised states in the country, will not get gas on contractual price.

Scrapping of the gas purchase agreement to supply gas to Gujarat from the Panna-Mukta-Tapti gasfields and cancellation of gas sale agreement between the Gujarat State Petroleum Corporation and Petronet LNG [Get Quote] have led to a situation where it would be a tough task for the state to manage gas for its industries.

Holding the Centre responsible for putting Gujarat in a tricky situation, state Petrochemicals Minister Saurabh Patel on Monday informed the Assembly that with the scrapping of gas purchase agreements, Gujarat would not be able to get gas from April this year.

Besides, gas supply from the PMT gasfields would be discontinued for Gujarat-based industries.

Instead of the earlier pricing formula for gas purchase, now pooling has come into force and Gujarat will have to take the Centre's approval for purchase of gas.

Elaborating on the gas supply situation, he said state-owned GSPC had entered into an agreement to source 1.3 mmscmd gas from the PMT gasfields.

Also, GSPC had entered into an agreement with Petronet LNG for 3 million standard cubic metres of gas. However, the Centre has cancelled both the agreements.

He said GSPC had entered into an agreement with Petronet LNG to purchase gas at $6.78 standard cubic metre from Qatar and the agreement was inked for 15 years. Following cancellation of the agreement, Gujarat will have to source gas at spot prices, which are hovering around $18 per standard cubic metre. "This has already taken its toll on many industrial units in Gujarat," he said.

He also said that the state government had passed a CNG Bill in February 2005, which is yet to be approved by the Centre. Instead of clearing the Bill, the Centre brought in the Petroleum and Natural Gas Regulation Act, whereby a state has to take approval from the authority for purchasing gas.

"The irony is that the rules of the said Act are yet to be framed," he claimed.