GAIL Signs 10-Year LNG Import Deal with Vitol
GAIL (India) Limited and Vitol Asia Pte Ltd have officially announced a long-term agreement for the supply of approximately one million metric tonnes of LNG annually to India over a span of roughly 10 years, starting from 2026. This collaboration entails Vitol's delivery of LNG sourced from its global portfolio to GAIL across various regions in India. Sandeep Kumar Gupta, GAIL's CMD, highlighted that this extended LNG partnership with Vitol will further strengthen GAIL's substantial LNG portfolio and assist in addressing the natural gas demand and supply gap in India.
Vitol CEO Russell Hardy expressed satisfaction in expanding the existing partnership with GAIL through this newly finalized Long Term LNG supply agreement. He emphasized the significance of India's growing LNG market and the company's enthusiasm in supplying LNG from its global portfolio to meet the escalating natural gas demand in the country. GAIL's Director (Marketing), Sanjay Kumar, highlighted that the LNG deal aligns with GAIL's strategy to address the consolidating demand for natural gas in India, forming part of the multiple negotiations the company has been engaging in with various LNG suppliers for long-term arrangements.
GAIL, operating an extensive network of more than 16,000 km of natural gas pipelines across India, is actively progressing on several pipeline projects to further expand its reach. The company holds a dominant position, commanding approximately 70 percent market share in gas transmission and boasting over 50 percent in gas trading within India. Additionally, GAIL and its Subsidiaries/JVs maintain a significant market share in City Gas Distribution. Vitol, a major player in the energy sector, operates across diverse segments such as oil, gas, power, renewables, and carbon. The company engages in trading approximately 7.4 million barrels per day of crude oil and products and orchestrates around 6,000 sea voyages annually.