GAIL and OIL Forge 15-Year Pact to Fuel Rajasthan's Energy Future

GAIL (India) and Oil India Limited have extended their Gas Sale and Purchase Agreement for 15 years, starting July 2025. The agreement secures up to 900,000 SCMD of natural gas from Rajasthan's Bakhri Tibba Block for a state-run power plant, underscoring the companies' commitment to India's energy security.


Devdiscourse News Desk | Updated: 10-07-2025 11:25 IST | Created: 10-07-2025 11:25 IST
GAIL and OIL Forge 15-Year Pact to Fuel Rajasthan's Energy Future
GAIL signs 15-year gas sale and purchase agreement with Oil India (Photo/ GAIL) . Image Credit: ANI
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In a strategic move to bolster energy accessibility, GAIL (India) and Oil India Limited (OIL) have inked a 15-year extension to their Gas Sale and Purchase Agreement, set to commence on July 1, 2025. Announced in an official statement, the deal ensures the supply of up to 900,000 Standard Cubic Meters per Day (SCMD) of natural gas from OIL's Bakhri Tibba Block in Rajasthan.

The agreement was ceremoniously signed by GAIL's Executive Director of Marketing, Sumit Kishore, and OIL's Executive Director of Business Development, Ranjan Goswami, in New Delhi. GAIL emphasized that this pact reflects the dedication of both Maharatna CPSEs to enhance energy security by advancing the production, transportation, and distribution of domestic natural gas.

Targeting energy supply to Rajasthan Rajya Vidyut Utpadan Nigam Limited's state-run power plant, GAIL continues to expand its extensive 16,421 km pipeline network, which transmitted over 127 MMSCMD of gas in 2024-25. The company also aligns its growth strategy with multiple pipeline projects and a growing LNG portfolio, while venturing into renewable energy sectors like solar and wind.

(With inputs from agencies.)

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