Oil India and GAIL Extend Gas Supply Agreement for Fifteen Years

oil-india-and-gail-extend-gas-supply-agreement-for-fifteen-years
Representation image

Oil India Limited and GAIL (India) Limited have signed a renewed gas sale and purchase agreement (GSPA), extending their existing partnership for another fifteen years, effective July 1, 2025. The agreement ensures the supply of up to 9,00,000 standard cubic metres per day (SCMD) of natural gas from Oil India’s gas fields located in Rajasthan. In a joint statement, both Maharatna CPSEs highlighted that the extended agreement reflects their shared commitment to enhancing the production, transportation, and distribution of domestic natural gas.

Supporting Rajasthan’s Power Generation Needs

The natural gas supplied under this agreement will power Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), the state’s primary electricity generation company. The clean energy source will help boost power reliability and environmental sustainability in Rajasthan’s energy mix.

GAIL to Manage Nationwide Gas Transportation

GAIL, which operates a vast gas pipeline network spanning over 16,400 km across India, will be responsible for the transportation of the natural gas to RRVUNL’s facilities. This ensures seamless delivery and efficient energy management across the supply chain. As reported by msn.com, the extended collaboration strengthens India’s domestic gas ecosystem and contributes to the country’s energy security and transition to cleaner fuels.