Guwahati, July 9: In a major move to boost domestic gas utilization and strengthen energy security, Oil India Limited (OIL) and GAIL (India) Limited have signed a long-term 15-year Gas Sale and Purchase Agreement (GSPA) for the supply of up to 900,000 Standard Cubic Meters per Day (SCMD) of natural gas from OIL’s Rajasthan gas fields.
The extended agreement, effective from July 1, 2025, was formalized at GAIL’s Corporate Office in New Delhi, with Ranjan Goswami, Executive Director (Business Development), OIL, and Sumit Kishore, Executive Director (Gas Marketing), GAIL, executing the pact.
Under this agreement, the natural gas will be supplied to Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), a state-run power generation utility, ensuring a cleaner and more efficient energy supply to Rajasthan’s grid.
The agreement reinforces the commitment of both Maharatna public sector enterprises under the Ministry of Petroleum & Natural Gas to collaborate in domestic gas production, transmission, and utilization. It also marks a strategic step toward enhancing the use of indigenous gas resources to meet India’s growing energy demand.
OIL continues to strengthen its upstream exploration and development portfolio across India, while GAIL remains at the forefront of gas monetization and infrastructure development. GAIL currently operates an extensive 16,421 km natural gas pipeline network, transmitting over 127 million standard cubic meters per day (MMSCMD) as of FY 2024–25.
GAIL’s presence spans beyond pipelines. It runs gas-based petrochemical facilities at Pata (810 KTA) and BCPL (280 KTA), holds a robust LNG portfolio of 16.56 million tonnes per annum (roughly 60 MMSCMD)—which accounts for 61 per cent of India’s total LNG imports—and maintains a dominant role in City Gas Distribution through its subsidiaries and joint ventures.
Additionally, GAIL is actively expanding into renewable energy sectors, including solar, wind, and biofuels, as part of its long-term energy diversification strategy.
This latest agreement between OIL and GAIL represents not just a commercial partnership but a national effort to promote clean, reliable, and domestically sourced energy for India’s future.
