GAIL India Ltd has signed a 10-year LNG import deal with Vitol, committing to purchase about 1 million metric tons of liquefied natural gas annually from 2026, as reported by Reuters on January 5. This agreement is part of India’s ambitious plan to increase the proportion of natural gas in its energy mix from the current 6.3% to 15% by 2030. Vitol will supply LNG from its global portfolio to GAIL at various locations in India, aiding in bridging the nation’s growing demand and supply gap for natural gas. The move aligns with India’s broader strategy to invest billions of dollars in natural gas infrastructure, and GAIL aims to expand its LNG portfolio by 7 to 8 million tons per year by 2030 through additional long-term deals and partnerships.

GAIL’s LNG portfolio already stands at around 14 million tons per year, sourced from countries such as the USA, Qatar, Australia, and Russia. The company continues negotiations with other potential partners for long-term agreements while actively exploring opportunities in the U.S. market, considering a 26% stake in an LNG plant and engaging in talks with Abu Dhabi National Oil Co, Russian LNG producer Novatek, and Qatar for additional LNG sources. These strategic moves position GAIL to play a pivotal role in India’s efforts to meet the rising demand for natural gas and achieve its energy mix targets.

Sources:

https://www.reuters.com/markets/deals/indias-gail-signs-10-yr-lng-purchase-deal-with-vitol-2024-01-05/