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GAIL Signs 15-year GSPA with OIL

GAIL (India) has signed a 15-year Gas Sale and Purchase Agreement (GSPA) with Oil India Limited (OIL), extending their existing arrangement from July 1, 2025. The agreement aims to strengthen domestic natural gas production and enhance energy accessibility in the country.

As part of the agreement, OIL will supply up to 900,000 Standard Cubic Meters per Day (SCMD) of natural gas to GAIL from its Bakhri Tibba Block in Rajasthan. This includes production from the Dandewala, Tanot, and Bagi Tibba fields.

The natural gas will be delivered to the state-run power plant operated by Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), helping the state meet its growing power demands through cleaner fuel.

GAIL’s LNG portfolio stands at 16.56 Million Metric Tonnes Per Annum (MMTPA), which is around 60 MMSCMD and represents 61 per cent of India’s total LNG imports. The company and its subsidiaries or joint ventures also hold a strong market share in city gas distribution.

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