**GAIL Signs Long-Term LNG Supply Agreement with Vitol Asia**
State-owned GAIL (India) Ltd has entered into a significant long-term liquefied natural gas (LNG) sales and purchase agreement with Vitol Asia Pte. Ltd. This agreement will facilitate the annual supply of approximately 1 million metric tonnes per annum (MMTPA) of LNG over a decade, commencing in 2026. According to GAIL, Vitol will source LNG from its extensive global portfolio for this supply.
Sanjay Kumar, GAIL’s Director of Marketing, emphasized the company’s commitment to expanding its long-term LNG portfolio to accommodate growing demand. He expressed satisfaction in partnering with Vitol Asia, highlighting that this agreement marks a crucial step in enhancing GAIL’s ability to serve its diverse and evolving customer base reliably.
Jay Ng, Chief Financial Officer of Vitol Asia, noted that the expanding Indian market is central to Vitol’s strategic objectives. He added that the company’s diversified portfolio positions it to provide India with a stable supply of cleaner and competitive energy.
India ranked as the world’s fourth-largest LNG importer in 2024, with demand projected to rise steadily over the next decade. The Indian government aims to increase the share of natural gas in the country’s primary energy mix from the current 6% to 15% by 2030. In line with this vision, India’s LNG regasification capacity has nearly doubled from 21 MMTPA in 2014.
In a separate development, GAIL recently extended its existing gas sale and purchase agreement with Oil India Ltd for an additional 15 years, effective from July 1, 2025. Under this 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 operates a vast network of 16,421 kilometers of natural gas pipelines across India, transmitting over 127 million standard cubic meters per day (MMSCMD) of gas in FY25. The company is also engaged in multiple pipeline projects to further expand its network. Additionally, GAIL runs a gas-based petrochemical complex at Pata and holds an LNG portfolio of 16.56 MMTPA, which constitutes 61% of India’s total LNG imports.
In the financial realm, GAIL reported a consolidated net profit of ₹2,491.76 crore for the January-March quarter of FY25, a slight increase from ₹2,468.71 crore in the same quarter the previous year. GAIL’s shares closed at ₹183.65 on the BSE, reflecting a 0.93% increase from the previous close.
**FAQ**
**What is the significance of GAIL’s agreement with Vitol Asia?**
The agreement is significant as it secures a long-term supply of LNG for GAIL, enhancing its ability to meet the growing energy demands in India while reinforcing its position in the global LNG market.
