GAIL (India) Limited has entered into a long-term Liquefied Natural Gas (LNG) Sales and Purchase Agreement (SPA) with Vitol Asia Pte. Ltd., as confirmed by the company in an official statement released on Tuesday. This development follows the binding Term Sheet signed between the two companies in January 2024, marking a significant step toward strengthening India’s energy security and supply chain.
Under the agreement, GAIL will supply approximately 1 Million Metric Tonnes Per Annum (MMTPA) of LNG to Vitol for a period of 10 years, beginning in 2026. Vitol will deliver LNG from its global portfolio to GAIL under the terms of the deal, further diversifying India’s natural gas sourcing avenues. This strategic supply arrangement reinforces GAIL’s presence in the global LNG market while supporting India’s long-term energy demand.
Sanjay Kumar, Director (Marketing) at GAIL, highlighted the importance of this collaboration: “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, currently the world’s fourth-largest LNG importer as of 2024, continues to see a steady rise in gas demand. The Government of India has set an ambitious goal to increase the share of natural gas in the national energy mix from 6% to 15% by 2030. Supporting this transition, India’s LNG regasification capacity has seen notable growth—rising from 21 MMTPA in 2014 to nearly double by 2025.
Jay Ng, Chief Financial Officer at Vitol Asia and member of the Executive Committee, shared his views on the agreement: “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, a Maharatna Central Public Sector Enterprise, remains a leader in natural gas transmission and distribution across India. Its operations span gas pipelines, processing and petrochemical facilities, upstream oil and gas projects, and LNG regasification terminals. Vitol, meanwhile, is one of the world’s leading energy and commodities trading companies, with over $13 billion invested globally in long-term energy assets and infrastructure.
(From ANI)
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