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Key Points

GAIL and Vitol Asia have finalized a decade-long LNG supply agreement, with deliveries set to begin in 2026. The deal strengthens India’s energy security as demand for natural gas continues to rise. Both companies highlighted the strategic importance of the partnership in meeting India’s evolving energy needs. The agreement aligns with India’s goal to increase natural gas usage in its energy mix to 15% by 2030.

Key Points: GAIL Signs 10-Year LNG Supply Deal With Vitol Asia for 1 MMTPA

  • GAIL to supply 1 MMTPA LNG for 10 years starting 2026
  • Deal follows binding Term Sheet signed in January 2024
  • India aims to raise natural gas share to 15% in energy mix by 2030
  • Vitol’s global LNG portfolio ensures stable supply for India’s growing demand
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GAIL signs long-term LNG agreement with Vitol Asia for 1 MMTPA supply

GAIL secures long-term LNG supply from Vitol Asia, reinforcing India's energy security and meeting rising natural gas demand by 2030.

"Vitol is honoured to extend its relationship with GAIL to a long-term LNG supply contract. – Jay Ng, Vitol Asia CFO"

New Delhi, July 15

GAIL (India) Limited has signed a long-term Liquefied Natural Gas (LNG) Sales and Purchase Agreement (SPA) with Vitol Asia Pte. Ltd., according to an official statement by the company released on Tuesday.

This agreement follows the binding Term Sheet that was signed between the two companies in January 2024.

As per the agreement, GAIL will supply approximately 1 Million Metric Tonnes Per Annum (MMTPA) of LNG for a period of about 10 years. The supply is scheduled to begin in 2026. Under this deal, Vitol will deliver LNG to GAIL from its global LNG portfolio.

Sanjay Kumar, Director (Marketing) at GAIL, expressed satisfaction over the partnership and said, "GAIL is expanding its long-term LNG portfolio to meet demand growth. We are pleased to partner with Vitol Asia Pte. Ltd., and this agreement represents a key milestone in reinforcing GAIL's capability to reliably serve its diverse and evolving customer base."

India has emerged as the world's fourth-largest importer of LNG in 2024. The demand for LNG in the country is expected to increase steadily over the next decade.

To support this growing need, the Government of India has set a target to raise the share of natural gas in the country's primary energy mix from the current 6 to 15 per cent by 2030.

In line with this vision, India's LNG regasification capacity has grown significantly, rising from 21 MMTPA in 2014 to nearly double that figure now.

Commenting on the agreement, Jay Ng, Chief Financial Officer at Vitol Asia and Executive Committee member, said, "Vitol is honoured to extend its relationship with GAIL to a long term LNG supply contract. The growing Indian market is core to Vitol's strategy and Vitol's diversified portfolio enables it to offer India a stable supply of cleaner and competitive energy."

GAIL is a Maharatna Central Public Sector Enterprise and is India's leading company in natural gas transmission and distribution. Its operations include a vast network of gas pipelines, processing and petrochemical plants, upstream oil and gas interests, and LNG regasification terminals across India.

Vitol is a major global player in energy and commodities trading. The company not only trades energy products but also has significant investments in energy infrastructure worldwide, with over $13 billion invested in long-term assets.

- ANI

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Reader Comments

P
Priya S
While this is good news, I hope GAIL ensures proper pricing mechanisms are in place. Last year my CNG bills increased by 30%! Government should monitor these deals closely to protect consumer interests.
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Arjun K
Finally some progress in our energy security! But 10 years is a long commitment - what if new technologies emerge? We should keep some flexibility in such long-term contracts.
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Sanjay N
As someone working in energy sector, this is a strategic move. Vitol's global portfolio gives us supply stability. But we must simultaneously invest in domestic gas production - can't rely only on imports.
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Nisha Z
Good initiative but what about environmental impact? Natural gas is cleaner than coal but still a fossil fuel. Hope some of these investments will go towards renewable energy too. #ClimateChange
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Karthik V
The 15% gas target by 2030 is ambitious but necessary. Our cities need cleaner fuel options. Hope this deal means more CNG stations coming up across India, especially in tier 2/3 cities.
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Meera T
As a homemaker, I welcome this news! Cooking gas prices have been fluctuating too much. Stable LNG supply should mean more predictable LPG cylinder prices. Fingers crossed! 🤞

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