To meet India’s rising energy demands, state-owned GAIL (India) Ltd will start receiving liquefied natural gas (LNG) shipments next month under a five-year agreement with Qatar Energy Trading. The LNG deal, which includes twelve cargoes per year, will commence in April, according to GAIL’s Managing Director and Chairman, Sandeep Kumar Gupta.
Qatar Energy Wins LNG Supply Tender
GAIL had awarded the LNG purchase tender to Qatar Energy Trading in December last year. The agreement secures 12 LNG cargoes annually from April 2025 for five years. This strategic move ensures a steady LNG supply to support India’s growing energy needs.
Expanding LNG Portfolio with Long-Term Agreements
In addition to the Qatar Energy deal, GAIL has signed multiple long-term LNG procurement agreements. The company has entered a ten-year contract with commodity trader Vitol Asia, securing approximately one million tons of LNG annually starting in 2026. Vitol will supply LNG from its global portfolio to various locations across India.
Additionally, GAIL has finalized a decade-long agreement with ADNOC Gas in the United Arab Emirates to procure 0.5 million tonnes of LNG per year, beginning in 2026. The agreements support India’s goal of increasing natural gas consumption. Currently, it accounts for 6-7% of the energy mix. The target is to reach 15% by 2030.
Future Plans for LNG Expansion
GAIL is actively exploring additional medium- and long-term LNG contracts to ensure a stable natural gas supply across various industries. The company currently manages an annual LNG portfolio of 14 million tonnes, diversified across multiple indices. As reported by psuconnect.in, GAIL plans to secure an additional 7-8 million tonnes of LNG per year by 2030. So far, 2.25 million tonnes have already been contracted.
