GAIL has signed a 15-year gas supply extension with OIL, effective July 1, 2025. OIL will supply up to 9,00,000 SCMD of natural gas from its Bakhri Tibba block in Rajasthan.
Supporting Rajasthan’s Energy Demand
The gas will be utilised by Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL) to generate power for the state, bolstering the region’s growing energy requirements. Moreover, this agreement aims to ensure uninterrupted gas supply for thermal power generation while also contributing to cleaner and more efficient energy production.
Highlighting Strategic Partnership
Sumit Kishore, Executive Director (Marketing-Gas), GAIL, and Shri Ranjan Goswami, Executive Director (Business Development), OIL, signed the deal, reaffirming the strategic collaboration between the two Maharatna Central Public Sector Enterprises (CPSEs).
Reinforcing National Energy Security
The agreement supports efforts to boost India’s energy security. GAIL’s 16,421 km pipeline network transports over 127 MMSCMD and is expanding to meet growing demand.
GAIL’s Diversified Energy Portfolio
Beyond pipeline transportation, GAIL operates one of India’s largest petrochemical facilities in Pata, Uttar Pradesh. The company has a strong LNG portfolio of 16.56 MMTPA (about 60 MMSCMD) and a solid presence in the City Gas Distribution sector.
Pushing Forward into Renewables
GAIL is actively diversifying into renewable energy, with investments in solar, wind, and biofuel projects. This forward-looking approach aligns with India’s clean energy goals and reflects GAIL’s commitment to a balanced and sustainable energy future.
Powering Progress Through Partnership
According to businessupturn.com, the extended GAIL-OIL deal is a key move to ensure reliable energy for Rajasthan’s power utilities. As both companies leverage their strengths, this partnership stands as a model for collaborative energy development in India.
