New Delhi: In a major step towards long-term energy security and cleaner power generation, Oil India Limited (OIL) and GAIL (India) Limited have renewed their Gas Sale and Purchase Agreement (GSPA) for a period of 15 years. The agreement ensures the supply of up to 900,000 standard cubic meters per day (SCMD) of natural gas from OIL’s Rajasthan gas fields.
The gas will be delivered to Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), the state-owned power utility, for electricity production—highlighting a continued push for domestically produced cleaner fuels in India’s energy mix.
New Agreement in Effect from July 1, 2025
The renewed agreement, effective from July 1, marks an extension of an earlier arrangement between the two Maharatna Public Sector Undertakings (PSUs). The signing ceremony took place at GAIL’s corporate office in New Delhi, where Ranjan Goswami, Executive Director (Business Development), OIL, and Sumit Kishore, Executive Director (Gas Marketing), GAIL, formalized the deal.
Boosting Domestic Gas Monetisation
“This long-term agreement reflects the dedication of both Maharatna CPSEs in ensuring the availability, transportation, and distribution of domestically produced gas,” OIL stated in its official release.
The move is part of India’s broader strategy to boost natural gas usage as a transition fuel and reduce reliance on imported fossil fuels. By providing reliable supply to the power sector, the agreement will facilitate cleaner energy generation and contribute to India’s energy security goals.
OIL to Continue Expanding Upstream Operations
OIL reaffirmed its commitment to expanding its upstream portfolio, with ongoing exploration and development activities across various basins in the country. As one of India’s leading oil and gas companies, it continues to play a pivotal role in supporting the government’s Atmanirbhar Bharat (self-reliant India) mission through domestic energy resource development.
GAIL: Backbone of India’s Gas Infrastructure
GAIL, the country’s largest gas marketing and transportation company, will continue its role in monetising domestic production and ensuring last-mile delivery of natural gas to industries and consumers. The company is a key player in developing India’s gas-based economy, with a focus on pipeline infrastructure, city gas distribution, and LNG sourcing.
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About OIL
Oil India Limited (OIL) is an Indian state-owned oil and gas company, operating in the upstream sector, primarily focused on exploring, developing, and producing crude oil and natural gas. OIL is a Maharatna company, meaning it is a central public sector undertaking of the Indian government, and is overseen by the Ministry of Petroleum and Natural Gas. It is the second-largest national oil and gas company in India.
About GAIL
GAIL (India) Limited is an Indian state-owned energy corporation with primary interests in the trade, transmission and production distribution of natural gas. GAIL also has interests in the exploration and production solar and wind power, telecom and telemetry services (GAILTEL) and electricity generation.
