GAIL (India) Limited and Vitol Asia Pte. Ltd. have executed a long-term LNG Sales and Purchase Agreement for the annual supply of approximately 1 million metric tonnes per annum of liquefied natural gas over a period of about 10 years, commencing in 2026. The agreement follows the binding term sheet signed by both companies in January 2024.
Under the agreement, Vitol will deliver LNG to GAIL from its global LNG portfolio.
Mr. Sanjay Kumar, director marketing at GAIL, emphasised the strategic importance of the partnership for the company’s growth objectives. “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,” he stated.
Jay Ng, CFO of Vitol Asia and Executive Committee member, highlighted the significance of the Indian market to Vitol’s strategy. “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,” he said.
India’s Growing LNG Market
India emerged as the world’s fourth-largest LNG importer in 2024, with demand expected to rise steadily over the next decade. The Government of India has established an ambitious target to increase the share of natural gas in the country’s primary energy mix from the current 6 percent to 15 percent by 2030.
Supporting this vision, India’s LNG regasification capacity has experienced substantial growth, nearly doubling from 21 MMTPA in 2014 to accommodate the expanding demand for natural gas in the country’s energy transition.
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