GAIL Signs 10-Year LNG Supply Deal With Vitol

SEATTLE (Oil Monster): State-run GAIL (India) Ltd has entered into a long-term LNG sales and purchase agreement with Vitol Asia Pte. Ltd for the supply of approximately 1 million metric tonnes per annum (MMTPA) of liquefied natural gas over a 10-year period, commencing in 2026.

Under the deal, Vitol will deliver LNG to GAIL from its global portfolio. GAIL stated the agreement forms part of its strategy to expand its long-term LNG portfolio in response to rising domestic demand. “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,” said Sanjay Kumar, Director (Marketing), GAIL.

Jay Ng, CFO of Vitol Asia, noted that India’s growing market is central to Vitol’s global strategy, adding that its diverse supply capabilities ensure competitive and cleaner energy options for Indian consumers. India was the world’s fourth-largest LNG importer in 2024, with demand forecast to increase steadily. The government aims to raise natural gas’s share in the energy mix from 6 per cent to 15 per cent by 2030. India’s LNG regasification capacity has nearly doubled from 21 MMTPA in 2014.

Separately, on 9 July, GAIL extended its existing gas sales pact with Oil India Ltd by 15 years, effective from 1 July 2025. Under this revised agreement, Oil India will supply up to 900,000 standard cubic metres per day (SCMD) of natural gas from the Bakhri Tibba block in Rajasthan.

Courtesy: www.constructionworld.in