GAIL and OIL Ink 15-Year Gas Sale and Purchase Agreement

10 Jul 2025 CW Team

GAIL (India) has signed a Gas Sale and Purchase Agreement with Oil India Limited (OIL) for extending the existing Gas Sale and Purchase Agreement for another 15 years, starting from 1st July, 2025. The agreement is to supply up to 900,000 Standard Cubic Meters per Day (SCMD) of natural gas from OIL’s Bakhri Tibba Block of Rajasthan covering Dandewala, Tanot and Bagi Tibba fields.

The agreement was executed by Sumit Kishore, ED (Marketing-Gas), GAIL and Ranjan Goswami, ED (BD), OIL in New Delhi.

This agreement highlights the dedication of both Maharatna CPSEs in production, transportation and distribution of natural gas available from domestic gas fields demonstrating their collaborative approach to enhancing energy security and accessibility. The sourced gas will be supplied to State run power plant of Rajasthan Rajya Vidyut Utpadan Nigam (RRVUNL).

GAIL owns and operates 16,421 km network of natural gas pipelines spread across the length and breadth of country, transmitting more than 127 MMSCMD of natural gas in financial year 2024-25. It is also working concurrently on execution of multiple pipeline projects to further enhance the spread. GAIL owns and operates a gas based Petrochemical Complex at Pata and has capacity of 810 KTA at Pata and 280 KTA at BCPL. In addition, GAIL's LNG portfolio stands at 16.56 MMTPA (approximately 60 MMSCMD), accounting for 61% of India’s total LNG imports. GAIL and its Subsidiaries JVs also have a formidable market share in City Gas Distribution. GAIL is also expanding its presence in renewable energy like solar, wind and biofuel.

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