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OIL, GAIL Extend 15-Year Gas Supply Pact for Rajasthan Power Plant

Oil India Ltd. (OIL) and GAIL (India) Ltd. have extended their existing Gas Sale and Purchase Agreement (GSPA) for an additional 15 years starting July 1, 2025. Under the renewed agreement, OIL will supply up to 900,000 Standard Cubic Meters per Day (SCMD) of natural gas from its Rajasthan gas fields to GAIL. The gas will be delivered to the state-run power plant operated by Rajasthan Rajya Vidyut Utpadan Nigam Ltd. (RVUNL), supporting power generation in the region.

The agreement was formalized by Ranjan Goswami, ED (Business Development) at OIL, and Sumit Kishore, ED (Gas Marketing) at GAIL, at GAIL’s corporate headquarters in New Delhi. Both Maharatna central public sector enterprises (CPSEs) emphasized their commitment to enhancing energy security and domestic gas utilization through this collaboration.

OIL reaffirmed its focus on expanding its upstream portfolio through continued exploration and development, while GAIL highlighted its role in efficient monetization and distribution of domestic natural gas. The extended GSPA is a strategic move to ensure long-term supply stability for power generation in Rajasthan and reflects the government’s emphasis on domestic energy production and distribution infrastructure.