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Gail-Oil India deal: Oil India Ltd to sell natural gas for 15 years; will supply 9 lakh standard cubic metres a day

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Gail-Oil India deal: Oil India Ltd to sell natural gas for 15 years; will supply 9 lakh standard cubic metres a day

Oil India Ltd, entered in a long term agreement with Gail, under which it would be selling natural gas from its Rajasthan field for the next 15 years. The deal extends an existing contract between the two public sector giants.As per the Gas Sale and Purchase Agreement (GSPA), effective from July 1, Oil India will supply up to 9,00,000 standard cubic metres of natural gas per day from its Bakhri Tibba block to a power plant operated by Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL). Gail will handle the transportation through its 16,421-km gas pipeline network.The agreement was signed on Wednesday at Gail’s corporate office in Delhi by Ranjan Goswami, executive director (business development) at Oil India, and Sumit Kishore, executive director (gas Marketing) at Gail.In a joint statement, both firms said the deal reflects their continued commitment to maximising the value of domestic gas through production, transportation and distribution.“This agreement highlights the dedication of both Maharatna central public sector enterprises (CPSEs) in production, transportation and distribution of gas available from domestic gas fields,” the OIL press statement said.Oil India,country’s second largest state oil and gas producer, reiterated its focus on expanding its upstream operations across India, while Gail said it continues to play a critical role in gas monetisation. Gail currently transports 127 million standard cubic metres of gas per day and is working on several pipeline projects to widen its reach further.Apart from transportation, Gail also operates a gas-based petrochemical plant in Pata, Uttar Pradesh, and manages an LNG portfolio of 16.56 million tonnes per annum, making up 61% of India’s total LNG imports.





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