OIL, GAIL extend gas supply pact for 15 years

Oil India Limited and GAIL India Limited announced that they have extended their existing Gas Sale and Purchase Agreement (GSPA) for the supply of natural gas from OIL’s Rajasthan fields for 15 years.

The renewed pact is effective from July 1, 2025. GAIL will receive up to 900,000 Standard Cubic Meters per Day (SCMD) of natural gas from OIL. The company said that it plans to deliver the gas to the Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL), the state-run power utility. With this, RVNL could be able to support electricity generation through cleaner fuel.

GAIL said that its revenue for the quarter registered a growth of 2.1% to ₹35,685 Crore. In the previous corresponding quarter, the business logged a revenue of ₹34,937 Crore. The figure was lower than the street estimates of ₹37,042 Crore. Net profit for the period came in at ₹2,049 Crore and was marginally below expectations of ₹2,153 Crore.

For the financial year 2026, GAIL has set aside a capex of ₹10,000 Crore. The company shall utilise this for the petchem, equity investments, LNG verticals and pipelines. The management also stated that the profitability has been impacted due to the cut in supply. 

At around 1.59 PM, GAIL was trading almost flat at ₹185.05, against the previous close of ₹185.03 on NSE.

On the other hand, Oil India was trading 2.04% lower at ₹436.30, against the previous close of ₹445.40 on NSE.

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