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

New Delhi, Jul 10 (KNN) In a strategic move to deepen India’s natural gas footprint, GAIL (India) Ltd and Oil India Ltd have signed a renewed 15‑year Gas Sale and Purchase Agreement (GSPA), effective July 1, 2025.

Under the terms of the long‑term 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 16,421‑km 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 India’s transition to cleaner energy. 

GAIL’s infrastructure prowess extends beyond pipelines: the company handles 61% of India’s LNG imports (roughly 60 MMSCMD or 16.56 MMTPA) and operates major petrochemical complexes at Pata (810 KTA) and Brahmaputra Cracker and Polymer Ltd (280 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 fossil‑fuel imports.

On the stock front, GAIL’s shares have seen a dip of nearly 5.8% over the past month, possibly reflecting investor caution over longer‑term contract margins.

(KNN Bureau)