GAIL and OIL renew 15-year gas supply deal to support Rajasthan power generation, boosting domestic energy security and infrastructure.
GAIL (India) Limited has formally extended its long-standing partnership with Oil India Limited (OIL) by signing a new Gas Sale and Purchase Agreement (GSPA) for a term of 15 years. This renewed agreement, effective from 1st July 2025, ensures the continuous supply of natural gas from OIL’s Bakhri Tibba Block in Rajasthan. The block comprises the Dandewala, Tanot, and Bagi Tibba fields, and the arrangement allows for the delivery of up to 900,000 Standard Cubic Meters per Day (SCMD) of natural gas.
The signing ceremony took place in New Delhi and was led by Sumit Kishore, Executive Director (Marketing-Gas) at GAIL, and Ranjan Goswami, Executive Director (Business Development) at OIL. This new agreement reinforces the strategic collaboration between these two Maharatna Central Public Sector Enterprises (CPSEs), underlining their joint commitment to enhancing domestic gas availability and strengthening India’s energy infrastructure. The natural gas sourced through this deal is earmarked for supply to the Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), the state-run power generation company, thereby supporting the region’s power requirements through cleaner fuel.
This agreement not only reflects the operational synergy between GAIL and OIL but also aligns with the Government of India’s objective to increase the share of natural gas in the country’s energy mix. It exemplifies a mutual commitment to boost domestic gas production and support cleaner energy adoption through reliable transmission and distribution networks.
GAIL continues to play a leading role in India’s gas infrastructure development. It operates an extensive natural gas pipeline network of approximately 16,421 kilometers, covering a vast geographical spread across the nation. In the fiscal year 2024–25 alone, GAIL transported more than 127 million standard cubic meters per day (MMSCMD) of natural gas. The company is also actively pursuing the construction of several new pipeline projects, aimed at expanding its gas transmission footprint and reaching underserved regions.
In the downstream segment, GAIL operates a gas-based petrochemical complex at Pata with a production capacity of 810 Kilo Tonnes per Annum (KTA), complemented by an additional capacity of 280 KTA at the Brahmaputra Cracker and Polymer Limited (BCPL) facility. GAIL also commands a significant position in the import and marketing of liquefied natural gas (LNG). Its LNG portfolio currently stands at 16.56 million metric tonnes per annum (MMTPA), equivalent to approximately 60 MMSCMD, accounting for 61% of the country’s total LNG imports.
Apart from its conventional natural gas business, GAIL is diversifying into the renewable energy sector, investing in solar, wind, and biofuel projects to align with India’s broader energy transition goals. Additionally, through its subsidiaries and joint ventures, GAIL maintains a substantial share in the city gas distribution (CGD) segment, providing cleaner fuel alternatives to households, industries, and transportation networks.
This renewed agreement between GAIL and OIL not only solidifies an essential supply chain relationship but also paves the way for sustained growth in domestic gas usage, supporting India’s move towards a cleaner and more self-reliant energy future.
