Gail-Oil India deal: Oil India Ltd to sell natural gas for 15 years; will supply 9 lakh standard cubic metres a day
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.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
3 days ago
- The Hindu
Speed up CGD infra in smaller towns of TG: Sridhar Babu
Industries and IT Minister D. Sridhar Babu, on Thursday, highlighted the need for accelerated rollout of City Gas Distribution (CGD) infrastructure across Tier-2 towns in Telangana to ensure equitable access to clean energy. He called upon the Centre to facilitate more investments in the GAIL (India) - HPCL joint venture Bhagyanagar Gas towards setting up additional CNG stations in urban and semi-urban areas, the Telangana Information Centre in New Delhi said in a release on the Minister's participation in a conference, organised by the Union Ministry of Petroleum and Natural Gas. Mr. Sridhar Babu underscored the necessity for deeper Centre-State collaboration to propel India's clean energy transition and showcased Telangana's progressive initiatives under its Clean & Green Energy Policy 2025. The Minister, who was accompanied by Director of Industries Nikhil Chakravarthy, said that Telangana is committed to playing a vital role in India's energy security. He reiterated the State's readiness to serve as a national model for stable and sustainable energy development. 'With proactive policies, digital infrastructure and industrial preparedness, Telangana is ready to lead India's clean energy revolution,' he told the Urja Manthan 2025 conference, in which Ministers from 22 States deliberated on energy security, clean fuel adoption and intergovernmental cooperation. Citing Telangana's strategic location along the East-West gas pipeline corridor, he urged for enhanced infrastructure and Central investments to support low-cost, gas-based industrialisation. He also sought Central incentives for MSMEs and industries under schemes like SATAT and the National Green Hydrogen Mission. Co-financing of new liquefied natural gas (LNG) and compressed natural has (CNG) terminals by both Central and State governments; promoting investments in compressed bio-gas plants to utilise Telangana's agricultural waste; measures to set up new CBG units and adopting innovative waste-to-energy technologies in agriculture-dense regions were other points the Minister highlighted.
Time of India
4 days ago
- Time of India
POL imports up 18.4% in June; oil import bill falls to $10 billion despite crude rise
New Delhi: India's import of petroleum products (POL) rose 18.4 per cent in June 2025, even as the overall oil and gas import bill declined to $10 billion from $10.8 billion in the same month last year, according to the latest official data. The rise in POL product imports during April-June FY26 stood at 2.9 per cent compared to the corresponding period of FY25, mainly on account of increased imports of liquefied petroleum gas (LPG), naphtha and petcoke. Crude and LNG trade Crude oil imports rose 5 per cent in June 2025, but dipped 0.3 per cent during the April-June quarter over the previous year, according to PPAC. Crude oil alone accounted for $9.7 billion of the $10 billion oil and gas import bill for June 2025, while liquefied natural gas (LNG) imports stood at $1.3 billion. India's petroleum product exports for the month were valued at $2.9 billion. The average Indian basket crude price in June 2025 was $69.77 per barrel, up from $64.04 in May 2025, but lower than the $82.55 recorded in June 2024. The price of Brent crude averaged $71.46/bbl in June 2025 compared to $64.22/bbl in May and $82.61/bbl in June last year. Crude processing and production India processed 22.1 million metric tonnes (MMT) of crude oil in June 2025, marking a 0.3 per cent decline over June 2024. Public sector and joint venture refiners processed 14.8 MMT while private refiners processed 7.3 MMT. Out of this, 2.2 MMT was from indigenous sources while 19.9 MMT was imported crude. Indigenous crude oil and condensate production for June 2025 was 2.3 MMT, registering a year-on-year decline of 0.5 per cent . ONGC produced 1.5 MMT, Oil India Ltd produced 0.3 MMT and production under PSC/RSC was 0.6 MMT. Petroleum products and exports Production of petroleum products was 23.5 MMT in June 2025, up 3.3 per cent over June 2024. Of this, 23.2 MMT was from refinery output and 0.3 MMT from fractionators. The major share came from high speed diesel (HSD) at 42.6 per cent , followed by motor spirit (MS) at 16.9 per cent , naphtha at 6.7 per cent , aviation turbine fuel (ATF) at 5.8 per cent , petcoke at 5.2 per cent , and LPG at 4.4 per cent . Exports of POL products, however, fell by 2.8 per cent in June 2025 and by 3.2 per cent in the April-June quarter over the previous year. The decline was attributed primarily to lower exports of HSD and ATF. Petroleum and gas consumption India's petroleum products consumption in April-June FY26 was 61.8 MMT, up 1.1 per cent from 61.2 MMT in the same period last year. Growth was led by LPG (8.9 per cent ), MS (7.1 per cent ), ATF (3.9 per cent ) and HSD (2.6 per cent ), along with increases in usage of SKO, petcoke and LDO. In June 2025 alone, petroleum product consumption reached 20.3 MMT, up 1.9 per cent over June 2024. Total natural gas consumption for June 2025 was 5,860 MMSCM, a 10 per cent rise from the same month last year. Cumulative consumption till June 2025 stood at 17,448 MMSCM, up 0.8 per cent over the same period last fiscal. Gross natural gas production, however, declined 3.1 per cent year-on-year in June to 2,900 MMSCM. Cumulative production till June FY26 stood at 8,788 MMSCM, down 3 per cent . LNG imports for June 2025 were 3,000 MMSCM, up 26.1 per cent from the same month in 2024. Cumulative LNG imports till June 2025 reached 8,778 MMSCM, marking a 4.6 per cent increase. Ethanol blending milestone Ethanol blending in petrol reached 19.9 per cent in June 2025. The cumulative blending rate from November 2024 to June 2025 stood at 18.9 per cent .
Time of India
5 days ago
- Time of India
GAIL in initial talks for long-term LNG deal with Alaska LNG
India's state-run GAIL is in initial talks to buy liquefied natural gas from the proposed Alaska LNG project as the South Asian nation expands its import capacity, three industry sources with knowledge of the matter said. The talks with developer Glenfarne come as India works to raise its energy imports from the United States to narrow its trade surplus as part of a broader trade agreement with Washington to avoid the imposition of hefty US tariffs. GAIL's discussions are preliminary as the landed cost of LNG will be a crucial deciding factor for the deal, the sources said. Glenfarne said last month that 50 firms had formally expressed interest in contracts with Alaska LNG. The project, championed by U.S. President Donald Trump, has been stuck on the drawing board for more than a decade. GAIL did not respond to Reuters email seeking comment on the talks. "Glenfarne does not comment on or confirm individual commercial negotiations, but Alaska LNG's growing commercial momentum reflects the project's competitive economic and geostrategic advantages," it said in an emailed statement to Reuters. India, the world's fourth-largest LNG importer, aims to increase the share of gas in its energy mix to 15% by 2030, up from about 6% currently, to reduce its carbon footprint. GAIL plans to increase the capacity of its 5 million metric tons per year Dabhol LNG terminal to 6.3 million tons per year by mid-2027 and to 12.5 million tons per year by 2031-32. Earlier this year GAIL invited initial bids from companies as it seeks to buy equity in an existing LNG project or a new project that would be commissioned by 2030 at the latest. The $44-billion Alaska LNG project could export up to 20 million metric tons per year of the superchilled gas. Alaska Governor Mike Dunleavy said in March the project could start exporting LNG by 2030. Glenfarne expects to make a final investment decision in the fourth quarter of this year on the first phase of the project - a 765-mile (1231-km) pipeline to deliver gas from the state's far north to its Anchorage region. Thailand's state-owned oil and gas giant PTT last month signed a 20-year agreement to buy 2 million tons per year of LNG from the Alaska LNG project. Others, including South Korea and Japan's top power producer JERA, are awaiting clarity on the financing and cost of the project. GAIL has contracts to buy 15.5 million tons annually of LNG including 5.8 million tons from the United States.
