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GAIL Vitol: GAIL signs deal 10-year deal with Vitol for LNG supply

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New Delhi: GAIL has tied up with global commodity trader Vitol for the purchase of 1 million tonnes of liquefied natural gas (LNG) annually for ten years, the state-run gas marketer said in a statement. “Under this deal, Vitol will deliver LNG from its global LNG portfolio to GAIL in India on a pan-India basis,” the company said. The supplies will start in 2026.

“This long-term LNG deal with Vitol by GAIL will augment its large Liquefied Natural Gas (LNG) portfolio and will contribute to bridging India’s demand and supply gap of natural gas,” said Sandeep Kumar Gupta, Chairman and Managing Director of GAIL.

GAIL, the nation’s largest natural gas marketer and transporter, is engaged in multiple negotiations with supplies for long-term purchase of LNG. It has around 70% market share in gas transmission and over 50% in gas trading in India. The company and its joint ventures also have a significant share in city gas distribution.

“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,” said Russell Hardy, CEO of Vitol.

Vitol is a global trader with investments in refineries, gas stations, storage, and LNG vessels. It trades 7.4 million barrels per day of crude oil and products every year. In 2022, Vitol physically delivered about 14 million tonnes of LNG.
India’s natural gas consumption has risen 8.5% this fiscal year over the previous one. LNG imports were 12% higher. Imported LNG meets 45% of the country’s gas demand.

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