GAIL and Oil India Ink 15 year GSPA to Reinforce Domestic Gas Output

ENA Sectors 2025-07-10 17:26:28 New Delhi, Jul 10 (KNN) In a strategic move to deepen Indias natural gas footprint, GAIL (India) Ltd and Oil India Ltd have signed a renewed 15âyear Gas Sale and Purchase Agreement (GSPA), effective July 1, 2025. Under the terms of the longâterm deal, Oil India will supply up to 900,000 standard cubic metres per day (SCMD) of natural gas from its Rajasthan assets—primarily the Bakhri Tibba block (including fields like Dandewala, Tanot, and Bagi Tibba)—to Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), the state-run power utility. GAIL will utilise its extensive 16,421âkm national pipeline grid to deliver the gas to designated power stations. This extension not only ensures consistent fuel supply for power generation in Rajasthan but also underscores both firms roles in bolstering Indias transition to cleaner energy. GAILs infrastructure prowess extends beyond pipelines: the company handles 61% of Indias LNG imports (roughly 60 MMSCMD or 16.56â¯MMTPA) and operates major petrochemical complexes at Pata (810 KTA) and Brahmaputra Cracker and Polymer Ltd (280â¯KTA). Meanwhile, Oil India continues to expand its upstream exploration capabilities across India. Market watchers see this agreement as evidence of robust collaboration between two Maharatna Central Public Sector Enterprises under the Ministry of Petroleum & Natural Gas, signalling a sharp focus on energy security, domestic resource utilisation, and reduction of fossilâfuel imports. On the stock front, GAILs shares have seen a dip of nearly 5.8% over the past month, possibly reflecting investor caution over longerâterm contract margins. (KNN Bureau) 42764 https://knnindia.co.in/news/newsdetails/sectors/gail-and-oil-india-ink-15-year-gspa-to-reinforce-domestic-gas-output 2025-07-10 17:26:28 knnindia.co.in GAIL and Oil India Ink 15 year GSPA to Reinforce Domestic Gas Output