New Delhi: In a significant development in India’s energy sector, GAIL (India) Limited has entered into a long-term Liquefied Natural Gas (LNG) Sales and Purchase Agreement (SPA) with Vitol Asia Pte. Ltd., securing the annual supply of approximately 1 Million Metric Tonnes Per Annum (MMTPA) of LNG for a period of 10 years, starting from 2026.
The agreement follows a binding term sheet signed between the two companies in January 2024, marking a new phase in their strategic partnership. Under the SPA, Vitol will deliver LNG to GAIL from its global LNG portfolio, further diversifying GAIL’s supply sources and strengthening India’s energy security.
A Strategic Move for India’s Energy Needs
Speaking on the occasion, Sanjay Kumar, Director (Marketing) at GAIL, said, “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.”
Jay Ng, Chief Financial Officer of Vitol Asia and Executive Committee member, echoed the sentiment:
“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.”
India’s Rising LNG Demand and Energy Goals
India emerged as the world’s fourth-largest LNG importer in 2024, underscoring the country’s growing reliance on natural gas to power its economy while reducing emissions.
The Indian government aims to increase the share of natural gas in its energy mix from 6% to 15% by 2030, aligning with its broader clean energy and climate commitments. In line with this target, India’s LNG regasification capacity has nearly doubled, rising from 21 MMTPA in 2014 to significantly higher levels today.
Reinforcing Long-Term Supply and Energy Transition
This agreement marks a critical milestone in GAIL’s strategic planning, as the company continues to bolster its LNG portfolio to address fluctuating spot prices, supply security, and rising demand across industrial, transport, and residential sectors.
The deal also aligns with India’s push toward a “Gas-based Economy,” ensuring stable and cleaner energy supplies for a country with rapidly growing consumption needs.
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About GAIL
GAIL (India) Limited is an Indian state-owned energy corporation with primary interests in the trade, transmission and production distribution of natural gas. GAIL also has interests in the exploration and production solar and wind power, telecom and telemetry services (GAILTEL) and electricity generation.
