| Particulars | Details |
|---|---|
| Parties Involved | GAIL (India) Limited and Oil India Limited (OIL) |
| Agreement Type | Gas Sale and Purchase Agreement (Extension) |
| Duration | 15 years |
| Effective Date | July 1, 2025 |
| Quantity of Gas | Up to 900,000 SCMD (Standard Cubic Meters per Day) |
| Source Fields | Dandewala, Tanot, and Bagi Tibba (Bakhri Tibba Block, Rajasthan) |
| End User | M/s Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL) |
Agreement Details
The extended Gas Sale and Purchase Agreement formalizes the continued supply of natural gas from OIL's prolific Bakhri Tibba Block in Rajasthan, specifically covering the Dandewala, Tanot, and Bagi Tibba fields. The agreement, signed by Shri Sumit Kishore, Executive Director (Marketing-Gas) for GAIL, and Shri Ranjan Goswami, Executive Director (Business Development) for OIL, in New Delhi, ensures a consistent flow of up to 900,000 SCMD of natural gas for the next decade and a half. This long-term commitment provides stability in gas supply for critical sectors.
Strategic Significance
This 15-year agreement highlights the shared dedication of GAIL and OIL, both Maharatna CPSEs, towards enhancing the production, transportation, and distribution of domestically available natural gas. The collaboration is a testament to their joint approach in strengthening India's energy security and ensuring wider accessibility of natural gas across the country. By securing a long-term supply from domestic fields, the agreement contributes significantly to reducing reliance on imported energy sources and supports the nation's energy independence goals. The consistent supply of natural gas is vital for various industries, including power generation, which is a key focus of this agreement.
Operational Aspects and End-User
The natural gas sourced under this agreement from OIL's Rajasthan fields is earmarked for supply to M/s Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), a state-run power plant. This direct supply chain ensures that the gas contributes directly to power generation, supporting the energy needs of Rajasthan. The operational efficiency and reliability of this supply chain are critical for maintaining consistent power supply and supporting industrial and residential consumption in the region. The agreement leverages GAIL's extensive pipeline network to transport the gas efficiently from the source fields to the power plant.
GAIL's Extensive Network and Operations
GAIL (India) Limited plays a pivotal role in India's natural gas infrastructure. The company owns and operates a vast network of natural gas pipelines spanning 16,421 kilometers across the country, transmitting over 127 Million Standard Cubic Meters per Day (MMSCMD) of natural gas in the financial year 2024-25. GAIL is also actively engaged in executing multiple pipeline projects to further expand its reach and enhance connectivity.
Beyond gas transmission, GAIL operates a gas-based Petrochemical Complex at Pata with a capacity of 810 Kilo Tonnes per Annum (KTA) and holds a capacity of 280 KTA at BCPL. The company's robust LNG portfolio stands at 16.56 Million Metric Tonnes per Annum (MMTPA), accounting for approximately 60 MMSCMD, which represents a significant 61% of India's total LNG imports. Furthermore, GAIL, along with its Subsidiaries and Joint Ventures, commands a formidable market share in the City Gas Distribution sector, providing clean energy to households and industries. Demonstrating its commitment to a sustainable energy future, GAIL is also actively expanding its presence in renewable energy sectors, including solar, wind, and biofuel. This diversified portfolio and strategic agreements like the one with OIL reinforce GAIL's position as a leading integrated energy company in India.
