Historic Agreement Between Oil India Ltd and Gail

In a landmark deal, Oil India Ltd has entered into a long-term agreement with Gail, committing to supply natural gas from its Rajasthan field for the next 15 years. This agreement extends the existing partnership between these two public sector giants, marking a significant milestone in India's energy sector.

Details of the Gas Sale and Purchase Agreement

Effective from July 1, the Gas Sale and Purchase Agreement (GSPA) stipulates that Oil India will supply up to 9,00,000 standard cubic metres of natural gas per day from its Bakhri Tibba block to a power plant operated by Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL). Gail will oversee the transportation through its extensive 16,421-km gas pipeline network.

Signing Ceremony and Future Commitments

The agreement was formally signed at Gail’s corporate office in Delhi, with representatives from both companies expressing their commitment to enhancing the value of domestic gas through production, transportation, and distribution. This deal underscores the pivotal role of both entities in India's energy landscape.

Expanding India's Energy Infrastructure

With Gail currently transporting 127 million standard cubic metres of gas per day and undertaking several pipeline projects, this agreement further solidifies its position in gas monetisation. Meanwhile, Oil India reaffirms its focus on expanding upstream operations across the country.