GAIL (India) was up 1.3% to Rs 342.75 and ONGC was up 1.09% to Rs 284.10.

Meanwhile, the BSE Sensex was up 39.50 points or 0.23% to 16,916.85.

GAIL (India) said during trading hours today, 24 July 2012, that the company and ONGC have signed a gas co-operation agreement for sale and purchase of gas from existing and new finds of ONGC to GAIL (India) initially for a period of 3 years, with a provision of extending it further. Under the agreement, the two companies have agreed to enhance the availability and effective utilization of natural gas from new and upcoming fields of ONGC for supply of gas to customers through GAIL's infrastructure.

The two companies also signed a Swap Agreement and Sales and Purchase Agreement for supply/sale of LNG by GAIL (India) to ONGC for shrinkage of C2+ Extraction at Dahej, from existing GSPA quantities from PLL and purchase of equivalent domestic gas made available by ONGC from domestic sources, subject to allocation by Ministry of Petroleum and Natural Gas. This will pave the way for commissioning of C2+ extraction plant by ONGC, GAIL (India) said in a statement. Pursuant to extraction, the C2+ components shall be supplied to ONGC Petro-additions (OPaL) for manufacturing petrochemicals at Dahej SEZ, the company said in a statement.

GAIL (India) has around 19% equity in OPaL and has around 38% marketing rights of petrochemicals produced from OPaL.

A shareholders agreement (SHA) pertaining to OPaL was also signed by GAIL (India) and ONGC as shareholders of OPaL.

In addition, a Polymer Marketing Side Letter to SHA was signed among GAIL (India), ONGC, and OPaL under which GAIL (India) has the right to market part of polymers produced by OPaL both in domestic as well as export markets. This arrangement is expected to enhance GAIL (India)'s marketing share for polymers in the country, the company said in a statement.

Besides polymer marketing rights, as per the Polymer Marketing Side Letter to SHA, GAIL (India) has the right to off-take Butadiene produced in OPaL plant to produce value added products through a special purpose vehicle (SPV), GAIL (India) said in a statement.

GAIL (India)'s net profit fell 38.3% to Rs 483.34 crore on 17.6% growth in net sales to Rs 10454.56 crore in Q4 March 2012 over Q4 March 2011. The company announces Q1 June 2012 results on 30 July 2012.

GAIL (India) is India's flagship gas transmission and marketing company with global footprints.

ONGC's net profit jumped 102.2% to Rs 5644.38 crore on 22.2% growth in net sales to Rs 18819.29 crore in Q4 March 2012 over Q4 March 2011. The company unveils Q1 June 2012 results on 11 August 2012.