GAIL, OIL Extend 15-Year Gas Supply Deal.

State-run GAIL (India) Limited announced recently has it signed a Gas Sale and Purchase Agreement (GSPA) with Oil India (OIL), extending their existing pact for another 15 years, effective July 1. This significant agreement will ensure the continued supply of natural gas from OIL’s fields in Rajasthan.

The extended agreement covers the supply of up to 900,000 standard cubic meters per day (SCMD) of natural gas. This gas will originate from OIL’s Bakhri Tibba Block in Rajasthan, encompassing the Dandewala, Tanot, and Bagi Tibba fields.

The collaboration between these two Maharatna Central Public Sector Enterprises (CPSEs) underscores their commitment to bolstering India's energy security and accessibility. The sourced gas is earmarked for supply to the Rajasthan Rajya Vidyut Utpadan Nigam (RRVUNL), a state-run power plant, which will utilize it for power generation. This long-term arrangement highlights the collaborative efforts of both companies in the production, transportation, and distribution of domestically available natural gas.