GAIL inks a purchase agreement with Vitol Asia Pte. Ltd for 1 MMTPA of LNG

GAIL (India) Ltd, a state-run company, has entered into a long-term agreement with Vitol Asia Pte. Ltd for the purchase of liquefied natural gas (LNG), according to an official statement. The deal involves the annual supply of around 1 million metric tonnes of LNG over a decade, beginning in 2026.

Under the terms of the agreement, Vitol is expected to supply LNG to GAIL from its international portfolio. Sanjay Kumar, GAIL’s marketing director, mentioned that the company was strengthening its long-term LNG supply to cater to rising demand. He expressed satisfaction over the partnership with Vitol, describing the agreement as a crucial step in enhancing GAIL’s ability to meet the needs of its expanding customer base.

Reports indicate that India ranked as the world’s fourth-largest LNG importer in 2024, with demand projected to grow steadily in the coming years. The government aims to increase natural gas’s share in the country’s energy mix from 6% to 15% by 2030. As part of this effort, India’s LNG regasification capacity has reportedly nearly doubled since 2014.  Jay Ng, Vitol Asia’s chief financial officer and a member of its executive committee, stated that India’s growing market was central to Vitol’s strategy. He added that the company’s diversified portfolio allowed it to provide India with stable and competitively priced cleaner energy.

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In a separate development, GAIL recently extended its gas supply agreement with Oil India Ltd for another 15 years, effective from July 2025. The revised terms stipulate that Oil India will supply up to 900,000 standard cubic meters of natural gas daily from its Rajasthan block.