The oil and gas sector in India has witnessed notable progress in key segments, despite tumultuous times globally. Growing momentum in exploration and production (E&P) has been accompanied by efforts to expand refinery capacity and strengthen pipeline connectivity. There has also been a renewed focus on the city gas distribution (CGD) segment and alternative fuels. Indian Infrastructure takes a look at the key developments in the oil and gas sector over the past year
Policy and regulatory updates
- The Ministry of Petroleum and Natural Gas was allocated Rs 304.43 billion under Union Budget 2026-27.
- In the upstream segment, the National Offshore Exploration Scheme Samudra Manthan, with an outlay of Rs 840.84 billion, was approved in July 2026, to be implemented through 2030-31 under Phase I. The Petroleum and Natural Gas Rules, 2025 were amended in December 2025 to enable ease of doing business and operations.
- The Petroleum and Natural Gas Regulatory Board (PNGRB) rationalised the unified tariff structure for the transportation of natural gas, reducing the number of tariff zones from three to two.
- The union cabinet approved GOBARdhan, or the National Circular Bioenergy Scheme, with an outlay of Rs 237.31 billion, set to be implemented from 2026-27 to 2035-36.
Key updates in E&P
- Oil and Natural Gas Corporation Limited (ONGC) has achieved the monetisation of the Daman Upside Development project in the Arabian Sea in March 2026, and commenced the monetisation of Chinnewala Tibba Gas, a discovered small field II block at the Rajasthan Kutch Onland Exploratory Asset in August 2025. Moreover, it spudded its exploratory well, MN-DW18-1-H-D, in the Mahanadi Offshore Basin in July 2026.
- Oil India Limited (OIL) reported the occurrence of natural gas in two exploratory wells, Vijayapuram-2 and Vijayapuram-3, in the Andaman Shallow Offshore Block AN-OSHP-2018/1. It also notified a new gas discovery at the nominated Dandewala Field in Rajasthan, indicating a notable potential for future appraisal, development and production. Further, it commenced an offshore drilling campaign at the Kerala-Konkan Basin by spudding the first well.
- Indian Oil Corporation Limited (IOCL) commenced the first domestic production from Jyoti-1 well in Block CB-ONN-2005/9 at the IndianOil Upstream Venture Limited site in Gujarat in November 2025.
- Cairn Oil and Gas notified a hydrocarbon gas discovery in the appraisal well Ambe-2A on the West Coast, at reservoirs located below the main gas field, within the Miocene-Tarkeshwar formation. It also completed the installation of India’s first sub-sea template at the Ambe offshore block in Cambay basin.
- Asian Energy Services Limited announced a new oil discovery at the onshore Mevad field in Gujarat, in well NM-01.
- Drillmec International Private Limited announced the spudding of a new generation land drilling rig at Moran in Assam for OIL, the inauguration of Rig NG-1500-7 and the spudding of a development well at ONGC’s Bantumilli site in the Rajahmundry Asset.
Refineries
- Hindustan Petroleum Corporation Limited’s (HPCL) Rajasthan Refinery at Pachpadra in Balotra was inaugurated in July 2026. HPCL also inaugurated a petroleum oil depot at Raipur in Chhattisgarh and commissioned a residue upgradation facility at its Visakh Refinery in Andhra Pradesh.
- The Dahej liquefied natural gas (LNG) terminal of Petronet LNG Limited in Gujarat witnessed an expansion from 17.5 million tonnes per annum (mtpa) to 22.5 mtpa.
- A 60 kilotonnes per annum polypropylene plant was commissioned at the Pata Petrochemical Complex of GAIL (India) Limited in February 2026.
- IOCL witnessed the inauguration of the Malkapur Terminal in Hyderabad, Telangana, on May 10, 2026, and commissioned a 21.8-km aviation turbine fuel pipeline between Jawaharlal Nehru Port Trust and Navi Mumbai International Airport.
- Foundation stones were laid for a polypropylene plant at the Kochi Refinery of Bharat Petroleum Corporation Limited (BPCL) in March 2026 and at the Numaligarh Refinery in Assam in September 2025.
- Works are also under way at other refineries. These include the capacity expansion of the Numaligarh Refinery in Assam from 3 mtpa to 9 mtpa and the setting up of pipelines, as well as the expansion of the Bina Refinery in Madhya Pradesh from 7.8 mtpa to around 12 mpta.
Pipelines
- GAIL (India) Limited dedicated the Srikakulam-Angul natural gas pipeline in October 2025, stretching across around 124 km in Andhra Pradesh and 298 km in Odisha. It also completed a section of the Nagpur-Jharsuguda natural gas pipeline, and the 694-km Mumbai-Nagpur natural gas pipeline section in January 2026 as part of the Mumbai-Nagpur-Jharsuguda natural gas pipeline.
- BPCL commissioned the 425-km Krishnapatnam-Hyderabad multiproduct pipeline in February 2026.
- The capacity of the Numaligarh-Siliguri product pipeline of OIL was expanded from 1.72 mtpa to 5.5 mtpa in March 2026.
- Phase I of the North East Gas Grid of Indradhanush Gas Grid Limited was inaugurated in March 2026. The network spans around 553 km and traverses across Assam, Arunachal Pradesh and Nagaland.
- Moreover, PNGRB granted authorisation to various entities for pipeline works.
