Oil India, Mahanagar Gas ink pact to explore LNG and clean energy opportunities

Oil India Ltd (OIL), a Maharatna public sector enterprise, and Mahanagar Gas Ltd (MGL) have signed a Memorandum of Understanding (MoU) to collaborate on opportunities across the liquefied natural gas (LNG) value chain and emerging clean energy segments.

The agreement was signed on October 6, 2025, by senior executives from both companies in the presence of OIL’s Director (Operations) and Director (HR), and MGL’s Managing Director.

“The collaboration will focus on assessing technical and commercial viability of LNG in the heavy-duty transport segment and on exploring projects in clean energy. Our objective is to take feasible pilots to commercial scale,” said OIL’s Director (Operations).

MGL’s Managing Director added, “This collaboration with OIL will help accelerate adoption of cleaner fuels in the long-haul transport sector. It will enable corporates to move towards greener logistics solutions and contribute to reducing the overall pollution footprint."

The tie-up comes as both companies expand their presence in the natural gas ecosystem. OIL has outlined an ambitious plan to ramp up gas production while advancing its clean energy roadmap. MGL, meanwhile, has already ventured into LNG retailing and continues to explore new clean fuel initiatives.

Shares of Oil India closed 1.34% higher at ₹420.25 on the NSE on Monday.

Separately, the state-run firm expects the $20-billion TotalEnergies-operated Mozambique LNG project—where it holds a stake—to resume development by the end of this year, after being halted in 2021 due to militant attacks.

In September, OIL also signed an MoU with GAIL (India) to strengthen collaboration across the natural gas value chain and expand access to cleaner energy.