GAIL (India) Limited has informed the Exchange regarding a press release dated July 09, 2025, titled "GAIL signs 15-year Gas Sale and Purchase agreement with OIL".
GAIL · price
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GAIL (India) Limited has signed a 15-year Gas Sale and Purchase Agreement (GSPA) with Oil India Limited (OIL), effective from 1st July 2025, extending an existing arrangement. Under the deal, GAIL will supply up to 900,000 Standard Cubic Meters per Day (SCMD) of natural gas sourced from OIL's Bakhri Tibba Block in Rajasthan, covering the Dandewala, Tanot and Bagi Tibba fields. The gas will be delivered to the state-run power producer Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL). Both GAIL and OIL are Maharatna Central Public Sector Enterprises (CPSEs), and the agreement underscores their joint commitment to strengthening domestic energy security. GAIL operates a 16,421 km natural gas pipeline network and transmitted over 127 MMSCMD in FY24-25, providing the infrastructure backbone for this long-term supply commitment.
The 15-year contract locks in long-term offtake volumes and revenue visibility for GAIL's gas marketing business, which is positive for earnings stability. The deal is unlikely to move the stock sharply but reinforces GAIL's role in India's domestic gas value chain.