State-owned GAIL (India) Ltd. has extended its existing gas sale and purchase agreement with Oil India Ltd. (OIL) for another 15 years. GAIL said in a media release that the deal came into effect on July 1, 2025.
Under the extended agreement, 900,000 standard cubic meters per day (31.7 million standard cubic feet per day) of natural gas will be supplied from OIL’s Bakhri Tibba Block of Rajasthan, which covers the Dandewala, Tanot and Bagi Tibba fields.
“This agreement highlights the dedication of both Maharatna central public sector enterprises in production, transportation, and distribution of natural gas available from domestic gas fields demonstrating their collaborative approach to enhancing energy security and accessibility”, GAIL said. “The sourced gas will be supplied to the state-run power plant of Rajasthan Rajya Vidyut Utpadan Nigam”, it said.
GAIL owns and operates a 16,421-kilometer (10,200 miles) network of natural gas pipelines across India, transmitting over 127 million standard cubic meters per day (4.4 billion cubic feet per day) in fiscal year 2024-25, GAIL said. GAIL added it is simultaneously executing multiple pipeline projects to broaden its reach.
GAIL also owns and manages a gas-based petrochemical complex at Pata, with capacities of 810 kilotons per annum (KTA) at Pata and 280 KTA at its subsidiary Brahmaputra Cracker and Polymer Ltd.
GAIL also owns a liquefied natural gas (LNG) portfolio totaling 16.56 million tons per annum, representing 61 percent of India’s total LNG imports.
Additionally GAIL, through its units and joint ventures, holds a significant market share in city gas distribution and is venturing into renewable energy sectors such as solar, wind and biofuels, according to the company.
To contact the author, email andreson.n.paul@gmail.com
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