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State-run GAIL (India) on Friday said that it has signed a long-term liquefied natural gas (LNG) contract with Vitol Asia Pte for a supply of around one million tonnes per annum for about 10 years, commencing 2026.
Under this deal, Vitol will deliver LNG from its global LNG portfolio to GAIL in India on a pan-India basis, the country’s largest gas utility said.
GAIL CMD Sandeep Kumar Gupta said, “This long-term LNG deal with Vitol by GAIL will augment its large LNG portfolio and will contribute to bridging India’s demand and supply gap of natural gas”.
The PSU, which owns and operates a network of over 16,000 km of natural gas pipelines on a pan-India basis, is working concurrently on execution of multiple pipeline projects to further enhance the spread.
Vitol CEO Russell Hardy said, “We are pleased to build on the existing relationship between Vitol and GAIL and to conclude this long-term LNG supply deal together. India is a significant and growing LNG market and we are excited to bring LNG supply from our global LNG portfolio to meet this rising natural gas demand in India”.
GAIL commands around 70 per cent market share in gas transmission and has a gas trading share of over 50 per cent in India. GAIL and its subsidiaries/ JVs also have a formidable market share in City Gas Distribution (CGD).
GAIL, Director (Marketing), Sanjay Kumar, said, the company is doing this deal as demand for natural gas in India is getting consolidated and this LNG tie-up is part of the multiple negotiations that GAIL has been carrying on with various LNG suppliers for long term deals.
Vitol trades 7.4 million barrels per day of crude oil and products, and charters circa 6,000 sea voyages every year. Its clients include national oil companies, multinationals, leading industrial companies and utilities.
It has a global LNG portfolio with long-term LNG supply from North America, Africa, the Middle East, and Asia, a global fleet of LNG vessels, and an experienced LNG team across Asia, Europe and the US. In 2022, Vitol physically delivered around 14 million tonnes per annum (MTPA) of LNG.
The company’s shares were up 0.40 per cent to ₹163.85 at 3 pm on the BSE.
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