Key Highlights:
- GAIL and Vitol sign 10-year LNG deal for 1 MMTPA, starting 2026.
- Agreement supports India’s target to increase natural gas usage to 15 percent by 2030.
- Vitol to supply LNG from its global portfolio to meet India’s growing demand.
Singapore: GAIL (India) Limited has signed a significant Liquefied Natural Gas (LNG) Sales and Purchase Agreement (SPA) with Vitol Asia Pte. Ltd. for the supply of 1 Million Metric Tonnes Per Annum (MMTPA) of LNG. This agreement, which spans a period of about 10 years, will commence in 2026 and marks a key step in GAIL’s strategy to strengthen its LNG portfolio amid India’s rising natural gas demand.
The deal follows a binding Term Sheet signed in January 2024 between the two companies. Under this agreement, Vitol will supply LNG to GAIL from its global LNG portfolio, offering flexibility and reliable delivery.
Strategic Move to Meet India's Growing Energy Needs
Speaking about the agreement, Sanjay Kumar, Director (Marketing) at GAIL, stated, “GAIL is expanding its long-term LNG portfolio to meet demand growth. This agreement with Vitol is a major milestone that reinforces our commitment to reliably serve our diverse customer base.”
Echoing this, Jay Ng, CFO of Vitol Asia, expressed that India is central to Vitol’s global energy strategy. “Our diversified LNG portfolio allows us to ensure a stable and competitive energy supply to the Indian market,” he added.
India’s LNG Demand on the Rise
India emerged as the fourth-largest LNG importer globally in 2024, and the country’s LNG demand is expected to grow steadily in the coming years. The Government of India has set a target to increase the share of natural gas in its energy mix from 6 percent to 15 percent by 2030 as part of its broader plan to transition toward cleaner fuels.
India’s LNG regasification infrastructure has nearly doubled since 2014, growing from 21 MMTPA to significantly higher capacity, reinforcing the country’s readiness to accommodate increased LNG imports.
GAIL’s Commitment to Energy Sustainability
As a Maharatna CPSE, GAIL plays a key role in natural gas transmission, distribution, and processing across India. The company also invests in petrochemicals, LNG regasification terminals, upstream oil & gas blocks, and renewable energy initiatives. Through partnerships like this with Vitol, GAIL continues to strengthen India's energy security and sustainability.
