GAIL Partners with Vitol for Decade-Long LNG Supply Deal

In a major move to secure long-term energy supplies, GAIL (India) Limited has signed a Liquefied Natural Gas (LNG) Sales and Purchase Agreement with Vitol Asia Pte. Ltd. This agreement, announced in an official statement on Tuesday, follows a binding Term Sheet inked in January 2024 between the two companies.

According to the terms, GAIL will supply around 1 Million Metric Tonnes Per Annum (MMTPA) of LNG over a 10-year period starting in 2026. Vitol is set to deliver LNG to GAIL from its global portfolio, marking a significant enhancement of GAIL's capacity to meet the rising demand. Sanjay Kumar, Director (Marketing) at GAIL, emphasized the importance of the partnership, noting it as a crucial milestone for the company.

India's status as the fourth-largest LNG importer in 2024 highlights the country's increasing energy needs. The government plans to raise the natural gas share in the national energy mix to 15 percent by 2030. Vitol Asia's CFO, Jay Ng, expressed enthusiasm for strengthening ties with GAIL, noting India's market aligns perfectly with Vitol's strategic goals.

(With inputs from agencies.)