ONGC and GAIL inked an MoU at India Energy Week 2026 to boost upstream collaboration, while GAIL expanded LNG shipping and gas infrastructure.
New Delhi: State-run energy majors Oil and Natural Gas Corporation (ONGC) and GAIL (India) Limited have signed a Memorandum of Understanding (MoU) to explore technical collaboration and partnership opportunities in upcoming exploration bid rounds, strengthening cooperation between the two public sector undertakings in India’s upstream energy sector.
The MoU was signed during India Energy Week 2026’s official event and aims at identifying possible areas of technical collaboration between the two companies in the field of exploration activities, building capabilities, sharing knowledge, and establishing strategic partnerships for bidding rounds in the future, according to a statement from the company. The two companies have agreed to utilize their own technical expertise and institutional capabilities to jointly support India’s energy security objectives over the long term.
The agreement comes amid a period when India is increasing its efforts to improve its own hydrocarbon exploration capabilities and/or reduce its dependence on imported hydrocarbons due to uncertain supplies worldwide.
GAIL Expands LNG Shipping Capabilities
Additionally, GAIL has taken significant steps recently to improve its LNG logistics and overall maritime operations. As stated to ETV Bharat by Vineet Gupta, Director (HR), GAIL, GAIL entered into an MoU with Japan’s Mitsui O.S.K. Lines (MOL) at the India Energy Week to improve LNG shipping processes between both companies.
Currently, GAIL has six LNG carriers under charter, thus expanding GAIL’s capabilities to transport natural gas from the international market to India and ensuring an adequate supply of LNG will be available to satisfy domestic demand for gas.
The charter agreement for the GAIL Bhuwan LNG carrier was executed on 27 January 2026, at a signing ceremony held at GAIL’s office. Senior officials from both MOL and GAIL attended the execution along with GAIL’s Chairman and Managing Director and all functional Directors. The deal is being seen as a key milestone under the ‘Maritime Amrit Kaal Vision 2047’, aimed at strengthening India’s energy and maritime supply chains.
The MOL partnership builds on a long-standing relationship between the two companies and aligns with both firms’ net-zero ambitions. MOL has identified Asia as a core growth region under its ‘Blue Action 2035’ management plan, citing rising energy demand across the region.
Infrastructure Expansion And Diversification Plans
Gupta said GAIL is also expanding beyond its core gas transmission business. The company has announced plans to set up two fertiliser plants, one each in Chhattisgarh and Maharashtra, through joint ventures, marking a strategic diversification.
On the infrastructure front, GAIL is working towards completing the Mumbai–Nagpur–Jharsuguda–Paradip (MNJPL) pipeline, while construction of the Jamnagar–Loni LPG pipeline is set to begin following approvals. Proposals related to ethane sourcing and associated facilities are currently under evaluation
“The national gas grid is largely in place. The next phase is about expanding reach, especially into Tier-2 and Tier-3 cities through city gas distribution networks,” Gupta said.
The focus, he added, is on increasing domestic PNG connections, expanding CNG stations, and bringing more commercial establishments onto the gas network to build sustainable CGD businesses.
LNG Sourcing And Green Hydrogen
Amid volatile global LNG markets, GAIL is managing its long-term portfolio—sourced from the US, Australia and Qatar—through a combination of long-, medium- and short-term contracts, along with hedging mechanisms to manage price risks.
On green hydrogen, Gupta said GAIL’s commissioning of a 10 MW PEM electrolyser, producing about 4.3 tonnes per day, marks an early step, though large-scale adoption will depend on cost reductions and transportation solutions.
Together, the ONGC-GAIL upstream collaboration and GAIL’s expanding LNG and infrastructure footprint underscore the PSU’s growing role in supporting India’s gas-led energy transition and long-term energy security.