New Delhi: Oil India Ltd (OIL) on Monday said it has inked a pact with North Eastern Electric Power Corp (NEEPCO) to supply natural gas to the latter's power station in Dibrugarh district of Assam.
OIL has signed a long-term Gas Sale and Purchase Agreement (GSPA) with NEEPCO for continued supply of 1.4 million metric standard cubic metres per day (MMSCMD) of natural gas.
The gas will be provided to NEEPCO's Assam Gas Based Power Station (AGBPS) at Bokuloni for another 15 years, OIL said in a statement.
"The new agreement with a term of 15 years, succeeds the earlier 10-year arrangement between the two companies," it said.
Through this long-standing partnership, OIL and NEEPCO continue to secure the power needs of Assam and the northeast, strengthening regional energy security and advancing the vision of affordable and clean energy, the statement said.
AGBPS is the largest gas-based power plant in Assam, and plays a vital role in meeting the demand of the region.
"The signing of this extended-term agreement reaffirms OIL's commitment and confidence in its strong reserve base and its capability to ensure sustained gas supply from its domestic sources," the statement added.
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