Maharatna PSU GAIL (India) Ltd will begin importing liquefied natural gas (LNG) from Qatar Energy Trading next month under a five-year contract, receiving 12 cargoes annually. This move aligns with GAIL’s strategy to secure long-term gas supplies amid India’s growing energy demand.
Also Read: BHEL Secures EPC Contract for Supercritical Thermal Plant in Chhattisgarh
GAIL Chairman and Managing Director Mr. Sandeep Kumar Gupta confirmed that purchases under the deal would commence in April. The agreement was finalized in December 2024 through a competitive LNG procurement tender.
In addition to the Qatar Energy deal, GAIL has recently signed multiple long-term LNG procurement contracts. The company has entered into a 10-year agreement with commodity trader Vitol Asia for approximately 1 million tonnes per annum (MTPA) of LNG from 2026. It has also secured a 0.5 MTPA supply contract with the UAE’s ADNOC Gas for a similar 10-year period. These agreements support India’s goal of increasing the share of natural gas in its energy mix to 15% by 2030.
Other public sector enterprises are also securing LNG supplies. Indian Oil Corporation (IOC) has signed agreements with ADNOC LNG for 1.2 MTPA over 14 years and with TotalEnergies for 800,000 tonnes per annum over 10 years.
Mr. Gupta stated that GAIL is actively exploring additional medium- and long-term LNG contracts to meet rising demand but did not disclose the pricing details of the Qatar Energy deal.
GAIL currently manages an LNG portfolio of 14 MTPA, with plans to expand it by 7-8 MTPA by 2030. The company has existing long-term contracts with US suppliers for 5.8 MTPA of LNG and a 2.5 MTPA supply agreement with Germany’s SEFE. GAIL also operates an extensive 16,000 km natural gas pipeline network, holding a dominant share in India’s gas transmission and trading sectors.
Industry sources suggest that the Qatar Energy deal is priced at a slope of 115% to Henry Hub plus a fixed component of USD 5.66 per mmBtu, with deliveries scheduled along India’s west coast. These strategic LNG agreements reinforce GAIL’s role in enhancing India’s energy security and transitioning to a gas-based economy.
Also Read: ONGC NTPC Green Completes Ayana Acquisition for Rs 6,248.50 Crore
