OIL India, NEEPCO Sign 15-Year Gas Supply Agreement; Share Price in Focus

Oil India Limited (OIL) has entered into a 15-year Gas Sale and Purchase Agreement (GSPA) with North Eastern Electric Power Corporation Limited (NEEPCO) for the supply of 1.4 million metric standard cubic metres per day (MMSCMD) of natural gas. The gas will be supplied to NEEPCO’s Assam Gas-Based Power Station (AGBPS) in Bokuloni, Dibrugarh. 

This new agreement replaces the earlier 10-year deal between the two companies.

Details of the Agreement

The signing took place at AGBPS, Bokuloni, in Dibrugarh district. OIL was represented by Executive Director (Business Development) Ranjan Goswami, while NEEPCO was represented by Executive Director (Operation & Maintenance) Bijit Kumar Goswami. 

AGBPS is Assam’s largest gas-based power plant and plays a key role in electricity generation in the region. The renewed contract secures long-term fuel supply for the plant.

Pipeline Upgrade

OIL also announced the completion of the Numaligarh–Siliguri Product Pipeline (NSPL) upgradation project. The capacity of the pipeline has been increased from 1.77 million metric tonnes per annum (MMTPA) to 5.5 MMTPA. The company said this will help in transporting higher volumes from the Numaligarh Refinery.

The NSPL upgradation aligns with the ongoing Numaligarh Refinery Expansion Project, which aims to increase the refinery’s capacity from 3.0 MMTPA to 9.0 MMTPA. The expansion project is being carried out by Numaligarh Refinery Limited (NRL), a subsidiary of OIL.

Other Developments

In recent months, OIL signed a Memorandum of Understanding (MoU) with GAIL (India) Limited to collaborate across the natural gas value chain. Another MoU was signed with Mahanagar Gas Limited to explore areas related to LNG and clean energy. The company also reported the presence of natural gas in its second exploratory well, Vijayapuram-2, located in the Offshore Andaman Block under the Open Acreage Licensing Policy (OALP).

Read More: Oil India Recovers Over 91% of $1 Billion Invested in Russia Projects!

Oil India Share Price Performance

As of October 14, 2025, 10:04  AM, Oil India share price was trading at ₹418.15, a 0.41% increase from the previous closing price.

Conclusion

OIL’s latest agreements and infrastructure projects show continued developments in gas supply and refinery operations in the northeastern region.

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