Oil India Ltd and Gail Sign 15-Year Natural Gas Agreement
Oil India Ltd to Provide Natural Gas to Rajasthan Power Plant
Oil India Ltd has made a big move. They signed a 15-year deal with Gail. This deal is about selling natural gas from their Rajasthan field. It’s a renewal of an existing contract between the two companies.
What’s in the Agreement?
- Start Date: July 1
- Daily Gas Supply: Up to 900,000 standard cubic meters
- Gas Source: Bakhri Tibba block
- Destination: A power plant run by Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL)
Gail will take care of transportation. They have a huge pipeline network spanning 16,421 kilometers.
Signing the Deal
The deal was signed on Wednesday. It happened at Gail’s main office in Delhi. Ranjan Goswami from Oil India and Sumit Kishore from Gail signed the agreement.
Boosting Domestic Gas Value
Both companies released a statement. They expressed their commitment to making the most of domestic gas. This includes production, transportation, and distribution.
Oil India said, “This deal shows our commitment. We aim to maximize the value of domestic gas through production, transportation, and distribution.”
Expansion and Gas Monetization
Oil India is the second-largest state oil and gas producer in India. They are focusing on expanding their operations. Gail is also playing a big role in gas monetization.
Gail transports a massive amount of gas daily. They are also working on new pipeline projects to reach even further.
Gail’s Operations and LNG Portfolio
Gail does more than just transportation. They run a gas-based petrochemical plant in Pata, Uttar Pradesh. They also manage a large LNG portfolio. This makes up 61% of India’s total LNG imports.
