GAIL signs 10-year LNG supply deal with Vitol, extends pact with Oil India | Company Business News-OxBig News Network

New Delhi: State-run GAIL (India) Ltd has signed a long-term LNG sales and purchase agreement with Vitol Asia Pte. Ltd for the annual supply of approximately 1 million metric tonnes per annum (MMTPA) of liquefied natural gas over a 10-year period, starting in 2026.

Under the agreement, Vitol will deliver LNG to GAIL from its global portfolio, the company said in a statement.

“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,” said Sanjay Kumar, director (Marketing), GAIL.

Jay Ng, chief financial officer of Vitol Asia and a member of its executive committee, said that the growing Indian market is core to Vitol’s strategy and its diversified portfolio enables it to offer India a stable supply of cleaner and competitive energy.

India was the world’s fourth-largest LNG importer in 2024, and demand is expected to continue rising steadily over the next decade. The central government has set a target to raise the share of natural gas in the country’s primary energy mix from the current 6% to 15% by 2030. As part of this vision, India’s LNG regasification capacity has nearly doubled from 21 MMTPA in 2014.

Separately, on 9 July, GAIL also signed an agreement with Oil India Ltd to extend their existing gas sale and purchase pact by another 15 years, effective from 1 July 2025. Under the revised agreement, Oil India will supply up to 900,000 standard cubic meters per day (SCMD) of natural gas from its Bakhri Tibba block in Rajasthan.

GAIL currently owns and operates a 16,421-km network of natural gas pipelines across the country, transmitting more than 127 million standard cubic meters per day (MMSCMD) of gas in FY25. It is also executing multiple pipeline projects to expand this network further. The company operates a gas-based petrochemical complex at Pata and holds an LNG portfolio of 16.56 MMTPA, accounting for 61% of India’s total LNG imports.

GAIL reported a consolidated net profit of ₹2,491.76 crore for the January-March quarter of FY25, compared with ₹2,468.71 crore in the same quarter a year earlier.

Shares of GAIL closed at ₹183.65 on the BSE on Monday, up 0.93% from the previous close.