OIL, GAIL renew 15-year gas supply deal from former's Rajasthan fields

New Delhi: Oil India Limited (OIL) and GAIL (India) Limited have extended an existing Gas Sale and Purchase Agreement (GSPA) by another 15 years to supply up to 900,000 standard cubic meters per day (SCMD) of natural gas from OIL’s Rajasthan gas fields, the company said in a statement on Wednesday.

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The agreement, which came into effect from July 1, extends an earlier arrangement between the two state-run Maharatna companies. The gas will be supplied to Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), the state-run power generator, for electricity production.

Long-term commitment to domestic gas monetisation

The agreement was signed by Ranjan Goswami, Executive Director (Business Development) at OIL, and Sumit Kishore, Executive Director (Gas Marketing) at GAIL, at GAIL’s corporate office in New Delhi.

“This long-term agreement reflects the dedication of both Maharatna CPSEs in ensuring the availability, transportation and distribution of domestically produced gas,” OIL said, noting that the move will contribute to India’s energy security by facilitating cleaner power generation through indigenous resources.

OIL to expand upstream footprint

OIL said it remains committed to strengthening its upstream portfolio through ongoing exploration and development activities across the country. GAIL, as the country’s largest gas marketing and transportation company, continues to play a central role in monetising domestic gas production. The PSUs operate under the Ministry of Petroleum and Natural Gas.

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