GAIL India signed a long-term agreement with Abu Dhabi National Oil Company (ADNOC) of the UAE. The deal entails the purchase of 0.5 million tons of liquefied natural gas (LNG) annually for a duration of ten years. Commencing from 2026, the deliveries are set to span across India.
This marks the second major long-term LNG procurement agreement inked by GAIL this month. On 05 January, GAIL had finalised another significant deal with Vitol Asia, a prominent commodity trader.
The agreement with Vitol Asia involves the annual supply of approximately one million metric tons of LNG over a decade, starting from 2026. Vitol Asia will source LNG from its diverse global portfolio and deliver it to GAIL across India. These long-term contracts are pivotal in addressing the gap between India’s natural gas demand and its supply, a move crucial for India’s aim to achieve a 15 per cent share of natural gas in its energy mix.
As reported by Swarajya, GAIL, known for its extensive network of over 16,000 km of natural gas pipelines across India, is actively engaged in multiple pipeline projects to expand its reach. Presently, GAIL holds two long-term agreements to procure a combined 5.8 million metric tons of LNG from the United States on a free on board (FOB) basis. Additionally, it has secured a 2.5 million metric ton supply contract with Germany’s state-owned Securing Energy for Europe GmbH on a Delivered Ex-Ship (DES) basis.
