GAIL and Vitol sign 10-year deal for 1 mmtpa LNG supply, strengthening India’s energy security and diversifying sourcing portfolio.
GAIL (Gas Authority of India Limited) has entered into a landmark long-term agreement with Vitol Asia, the Singapore-based subsidiary of Switzerland-headquartered energy and commodities giant Vitol. The Sales and Purchase Agreement (SPA), which builds upon the binding term sheet signed in January 2024, formalizes a 10-year liquefied natural gas (LNG) supply arrangement. Under the terms of the deal, Vitol will supply approximately 1 million metric tonnes per annum (mmtpa) of LNG to GAIL beginning in 2026, sourced from Vitol’s globally diversified LNG portfolio.
The agreement is strategically important for GAIL, which continues to expand its LNG sourcing base to ensure supply reliability and meet India’s growing energy demand. Sanjay Kumar, Director (Marketing) at GAIL, emphasized the significance of the partnership, stating, “This agreement with Vitol Asia represents a pivotal milestone as GAIL strengthens its long-term LNG portfolio. It is a step forward in our efforts to cater to the growing and dynamic needs of our customers.”
India’s LNG market has experienced substantial growth in recent years. In 2024, India became the fourth-largest importer of LNG in the world, reflecting the rising domestic demand for cleaner fuel alternatives. The Indian government aims to boost the share of natural gas in its primary energy mix from the current 6% to 15% by 2030 as part of its broader energy transition and climate goals. To support this shift, the country’s LNG regasification capacity has nearly doubled from 21 mmtpa in 2014 to a significantly higher figure today.
This latest deal also underscores GAIL's active pursuit of global LNG sources. Earlier in 2024, GAIL, along with two other Indian companies, signed a major agreement with Argentina’s YPF to procure 10 mmtpa of LNG from the proposed Argentina LNG project—highlighting GAIL’s strategic move to secure diverse supply chains.
From Vitol’s perspective, the Indian energy market is a key pillar of its global growth strategy. Jay Ng, Chief Financial Officer of Vitol Asia, remarked that India’s expanding energy needs align well with Vitol’s capabilities to offer reliable and competitive LNG supply from its diverse portfolio. “India is at the heart of our strategy. With this agreement, we are well-positioned to serve its future energy needs,” Ng stated.
Further demonstrating its growing footprint in LNG trade, Vitol also recently signed a deal with Oman LNG in May to procure 800,000 metric tonnes per annum. This, along with the GAIL agreement, strengthens Vitol’s ability to meet increasing demand across various global markets.
