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.
Under the renewed agreement, GAIL will receive up to 900,000 Standard Cubic Meters per Day (SCMD) of natural gas from OIL’s Bakhri Tibba Block in Rajasthan. This block includes the Dandewala, Tanot, and Bagi Tibba fields.
The agreement was formalized in New Delhi, with Sumit Kishore, Executive Director (Marketing-Gas) representing GAIL, and Ranjan Goswami, Executive Director (Business Development) signing on behalf of OIL.
GAIL highlighted that the extended partnership underscores the commitment of both Maharatna Central Public Sector Enterprises (CPSEs) to supporting domestic gas production, transportation, and distribution. The collaboration reflects a shared focus on strengthening India’s energy security and ensuring broader accessibility to natural gas.
The gas sourced under this agreement will be supplied to the state-owned power generation utility, Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL).
GAIL currently operates a vast network of 16,421 kilometers of natural gas pipelines across the country, transmitting over 127 million metric standard cubic meters per day (MMSCMD) of gas during the 2024–25 fiscal year. The company is also actively developing several new pipeline projects to further expand its infrastructure.
In addition to its pipeline operations, GAIL owns and runs a gas-based petrochemical complex in Pata, with a capacity of 810 KTA, along with another facility at BCPL with 280 KTA capacity. The company’s LNG portfolio stands at 16.56 million metric tonnes per annum (MMTPA), or about 60 MMSCMD—representing 61% of India’s total LNG imports.
GAIL and its subsidiaries and joint ventures also hold a significant share in the City Gas Distribution market. Furthermore, the company is steadily increasing its footprint in renewable energy sectors, including solar, wind, and biofuels, as part of its broader diversification strategy.
