Oil India Limited and GAIL (India) Limited have signed a comprehensive 15-year Gas Sale and Purchase Agreement extending their existing partnership for natural gas supply from Oil India’s Rajasthan fields. OIL’s Bakhri Tibba Block, which comprises the Dandewala, Tanot, and Bagi Tibba fields, is guaranteed to produce up to 900,000 natural gas standard cubic meters per day (SCMD) under the agreement, which takes effect on July 1, 2025.
Strategic Maharatna Partnership Strengthens Energy Security
The agreement was executed by Shri Ranjan Goswami, Executive Director (Business Development), OIL and Shri Sumit Kishore, Executive Director (Gas Marketing), GAIL at GAIL’s Corporate Office in New Delhi. This collaboration between two leading Maharatna Central Public Sector Enterprises under the Ministry of Petroleum & Natural Gas demonstrates their unified approach to enhancing India’s energy security and accessibility through domestic natural gas utilization.
The state-run power utility, Rajasthan Rajyut Utpadan Nigam Limited (RRVUNL), would receive the sourced natural gas in order to generate electricity. This strategic arrangement ensures consistent fuel supply for power generation while supporting Rajasthan’s energy infrastructure requirements and contributing to cleaner energy transition in the state’s power sector.
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Published on: July 8, 2025 / M Vishnu
Comprehensive Infrastructure and Operational Excellence
Over 127 MMSCMD of natural gas were delivered by GAIL’s extensive pipeline network, which spans 16,421 kilometers across India, during the fiscal year 2024–2025. In order to satisfy India’s expanding natural gas distribution needs, the business is still working on a number of pipeline projects to improve reach and connectivity.
At 16.56 MMTPA (about 60 MMSCMD), the company’s LNG portfolio represents 61% of India’s total LNG imports. In addition to aggressively growing its footprint in renewable energy areas including solar, wind, and biofuel efforts, GAIL and its subsidiaries continue to have a sizable market share in City Gas Distribution.
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Upstream Development and Gas Monetization Strategy
Oil India is still dedicated to expanding its upstream portfolio by carrying out further exploration and development on both new and existing land across the nation. The company’s strategic focus on maximizing domestic natural gas production aligns with national energy security objectives while reducing import dependency.
GAIL plays a pivotal role in gas monetization through its comprehensive infrastructure network and marketing capabilities. The 15-year agreement duration provides long-term revenue visibility for both parties while ensuring stable gas supply for critical power generation requirements in Rajasthan.
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