GAIL Signs 15-Year Agreement with Oil India for Gas Supply from Rajasthan

In a significant move to bolster India's energy security and enhance the utilisation of domestic natural gas reserves, GAIL (India) Limited has signed a 15-year Gas Sale and Purchase Agreement (GSPA) with Oil India Limited (OIL). The agreement, effective from 1st July 2025, aims to ensure a steady supply of natural gas from OIL’s fields in Rajasthan to state-run power utilities, reinforcing the commitment of both Maharatna PSUs towards sustainable and reliable energy solutions.

Long-Term Commitment Towards Energy Security

GAIL (India) has entered into a significant 15-year Gas Sale and Purchase Agreement (GSPA) with Oil India (OIL), furthering their partnership in ensuring the uninterrupted supply of natural gas. 

Effective from 1st July 2025, this agreement facilitates the supply of up to 900,000 Standard Cubic Meters per Day (SCMD) of natural gas from OIL’s Bakhri Tibba Block in Rajasthan, encompassing the Dandewala, Tanot and Bagi Tibba fields. The agreement was officially executed by Shri Sumit Kishore, ED (Marketing-Gas), GAIL and Shri Ranjan Goswami, ED (BD), OIL, in New Delhi.

Both Maharatna Central Public Sector Enterprises (CPSEs) have reiterated their commitment to advancing domestic energy production and distribution. The sourced gas will be directed to the state-run power plant of Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), highlighting their coordinated efforts in bolstering India’s energy infrastructure.

GAIL’s Expanding Infrastructure and Energy Footprint

GAIL continues to lead India’s gas transmission sector with a vast network of 16,421 km of pipelines, moving over 127 MMSCMD of natural gas during FY 2024–25. The company is simultaneously executing multiple new pipeline projects to widen its reach across the country.

Apart from its core operations, GAIL owns a gas-based petrochemical complex at Pata with a capacity of 810 KTA and at BCPL with 280 KTA. Its LNG portfolio stands strong at 16.56 MMTPA (around 60 MMSCMD), contributing 61% of India’s total LNG imports. 

Furthermore, GAIL maintains a significant presence in the City Gas Distribution segment through its subsidiaries and joint ventures. The company is also diversifying into renewable sectors, including solar, wind, and biofuels, aligning with India’s clean energy goals.

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GAIL Share Price Performance 

As of July 10, 2025, at 11:21 AM, GAIL share price is trading at ₹184.29, a decline of 0.40%.

Conclusion

This 15-year agreement between GAIL and OIL not only reinforces their strategic alliance but also reflects a shared vision of strengthening India’s domestic energy supply chain. Through integrated efforts in production, transmission, and innovation, both entities are setting a strong foundation for long-term energy sustainability.

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