OIL and BPCL Ink JV Agreement for City Gas Distribution in Arunachal Pradesh

Oil India Limited (OIL) and Bharat Petroleum Corporation Limited (BPCL) have signed a Joint Venture Agreement (JVA) to establish a City Gas Distribution (CGD) network in Arunachal Pradesh. As per the press release, the agreement was signed in the presence of Ranjit Rath, Chairman and Managing Director of OIL, and Sanjay Khanna, Chairman and Managing Director of BPCL.

Project Award and Coverage

The project was awarded to the OIL-BPCL consortium during the 12th CGD bidding round conducted by the Petroleum and Natural Gas Regulatory Board (PNGRB). The network will cover both urban and semi-urban areas in the state, supplying Compressed Natural Gas (CNG) for vehicles and Piped Natural Gas (PNG) for households, commercial establishments, and industries.

As per news reports, last year in October, BPCL and Oil India formed a joint venture to work on a city gas distribution project in Arunachal Pradesh. Both companies initially held an equal 50% stake. However, they agreed to offer up to a 10% stake to the Arunachal government, which would decrease both of their shares equally.

Existing Infrastructure

OIL already operates in the state with a history of hydrocarbon production. In 2024, it commissioned the Kumchai-Kusijan gas pipeline, which reinforced gas supply infrastructure in the region. This existing setup is expected to support the planned CGD network.

Officials Statements at Signing

As per the press release, Ranjit Rath, CMD, OIL, stated, "The establishment of City Gas Distribution in Arunachal Pradesh is a significant step in OIL’s ongoing initiative to realise the vision of bringing clean and reliable energy to the region. OIL has a long-standing legacy of hydrocarbon production in the state, and with the commissioning of the Kumchai-Kusijan gas pipeline last year, we successfully reinforced our role as an anchor in advancing the Government of India's hydrocarbon vision for the North-East." 

Shri Sanjay Khanna, CMD of BPCL, stated, "This Joint Venture reaffirms BPCL’s commitment to expanding clean energy access across India, with special focus on the North-East. Together with OIL, we will build a strong City Gas Distribution network to serve households, industries, and transport. Arunachal Pradesh holds great potential, and through this initiative, we aim to drive sustainable growth, improve the quality of life, and support India’s vision of a gas-based economy”.

Read more: How Will Petrol Pumps Policy Reform Impact Market Leadership of IOC, BPCL, and HPCL?

OIL and BPCL Share Price Performances

As of August 28, 2025, 10:04 AM, Oil India share price was trading at ₹398.55, a 0.08% decrease from the previous closing price.  

While at the same time, Bharat Petroleum Corporation share price was trading at ₹312.05, a 0.01% decrease from the previous closing price.

Conclusion

The OIL-BPCL joint venture introduces city gas distribution in Arunachal Pradesh, with equal ownership and provision for state participation in the project.

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