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Key Points

GAIL has signed a 15-year gas supply agreement with Oil India to deliver 900,000 SCMD from Rajasthan fields. The deal reinforces India’s domestic gas infrastructure and energy security. The gas will primarily power Rajasthan’s state-run electricity plants. GAIL continues expanding its pipeline network and renewable energy projects.

Key Points: GAIL and Oil India Sign 15-Year Gas Supply Deal for Rajasthan

  • GAIL secures 15-year gas supply from Oil India’s Rajasthan fields
  • Deal ensures 900,000 SCMD for RRVUNL power plants
  • Strengthens India’s domestic gas distribution network
  • Supports renewable energy expansion alongside LNG dominance
2 min read

GAIL signs 15-year gas sale and purchase agreement with Oil India

GAIL extends gas supply agreement with Oil India for 900,000 SCMD from Rajasthan fields to boost energy security and power generation.

"This agreement highlights the dedication of both Maharatna CPSEs in enhancing energy security and accessibility. – GAIL Official Statement"

New Delhi, July 10

GAIL (India) 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, according to an official statement by the company.

GAIL on Thursday stated that 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.

GAIL also noted that this agreement highlights the dedication of both Maharatna CPSEs in the 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 the state-run power plant of M/s Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL).

GAIL owns and operates a 16,421 km network of natural gas pipelines spread across the length and breadth of the country, transmitting more than 127 MMSCMD of natural gas in the financial year 2024-25.

It is also working concurrently on the execution of multiple pipeline projects to further enhance the spread.

The company also owns and operates a gas-based Petrochemical Complex at Pata and has a 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 per cent of India's total LNG imports. GAIL and its Subsidiaries / JVs also have a formidable market share in City Gas Distribution.

According to the company statement, it is also expanding its presence in renewable energy like solar, wind, and biofuel.

- ANI

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Reader Comments

S
Sarah B
As someone working in renewable energy sector, I'm concerned about continued focus on fossil fuels. While this deal is important for energy needs, hope GAIL's renewable expansion plans get equal priority. Climate change is real!
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Ananya R
Good initiative but will the benefits reach common people? Last time electricity prices went up despite such agreements. Government should ensure transparency in pricing mechanism. #EnergyForAll
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Vikram M
Proud to see Indian PSUs collaborating like this! 👏 The pipeline network expansion is crucial for connecting remote areas. Hope this creates more employment opportunities in Rajasthan too. #MakeInIndia
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Karan T
While the deal looks good on paper, I hope proper environmental safeguards are in place for Rajasthan's fragile ecosystem. We've seen damage from similar projects in other states. Development shouldn't come at nature's cost.
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Priya S
As a Rajasthan resident, I welcome this! Our state has been energy-deficient for too long. Hope RRVUNL utilizes this gas properly and reduces power cuts. Also, local communities should get first preference in jobs created.

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