GSEG was set up in 1998 as a power generation company. GSEG owns and operates a gas based power plant in Hazira that was commissioned in 2002. The plant was set up to provide electricity for the Gujarat state grid, with all electricity currently produced at the plant sold to Gujarat Urja Vikas Nigam Limited (“GUVNL”), a Government of Gujarat owned electricity company. The plant sources its gas from us at fixed prices through a long-term fuel supply agreement and also has a gas transmission agreement with GSPL for delivery of gas.

GSEG is in the process of extending the capacity of its Hazira plant. It has entered into a gas purchase contract with us to provide the gas required for the expanded plant, effective for 20 years from commissioning, with the gas to be bought at mutually agreed prices. The additional power to be generated will be bought by GUVNL pursuant to a 20 year procurement contract effective from commissioning.