GAIL (India) Ltd has signed a long-term LNG sales and purchase agreement with Vitol Asia. This marks a significant step in reinforcing its natural gas supply chain as India advances toward a gas-based energy economy.
Ten-Year LNG Agreement with Vitol
Under the new agreement, Vitol will supply approximately one million tons per annum (MTPA) of LNG to GAIL for a period of ten years, starting from 2026. The deliveries will come from Vitol’s diversified global portfolio, enabling GAIL to secure reliable access to international gas supplies.
Sanjay Kumar, Director (Marketing), GAIL, stated, “We are expanding our long-term LNG portfolio to meet India’s growing demand. We are pleased to partner with Vitol Asia Pte. Ltd. This agreement marks a key milestone in our efforts to reliably serve our diverse and evolving customer base.” This move aligns with GAIL’s broader strategy to diversify gas sourcing and enhance supply security in support of India’s clean energy ambitions.
GAIL Extends 15-Year Supply Agreement with Oil India
In a parallel development, GAIL has also extended its existing natural gas sale and purchase agreement with Oil India Ltd by 15 years, effective July 1, 2025. Under the renewed pact, Oil India will supply up to 900,000 standard cubic meters per day (SCMD) of gas from its Bakhri Tibba block in Rajasthan. The extension reflects GAIL’s commitment to maintaining stable domestic supply sources. It is also scaling up international partnerships to balance its portfolio and meet rising consumption.
Advancing India’s Gas-Based Economy
As reported by projectstoday.com, these two agreements position GAIL to play a central role in India’s energy transition. They ensure long-term gas availability from both international and domestic sources. As the country ramps up its shift toward cleaner fuels, GAIL’s evolving portfolio plays a crucial role in meeting rising energy needs. It supports industrial, commercial, and residential demand with greater flexibility and reliability.
