Vitol and GAIL pen long-term LNG supply deal into India
Vitol and GAIL pen long-term LNG supply deal into India - Offshore Energy
Vitol and GAIL pen long-term LNG supply deal into India
Vitol Asia, a unit of a Switzerland-based energy and commodities company Vitol, and GAIL (India), the largest natural gas supplier under India’s Ministry of Petroleum and Natural Gas, have signed a deal for the annual supply of approximately one million metric tons of LNG for a period of approximately 10 years, starting from 2026.
Under the deal, Vitol will deliver LNG from its global LNG portfolio to GAIL, and the deliveries will be on a pan-India basis.
GAIL Chairman and Managing Director Sandeep Kumar Gupta said: “This long-term LNG collaboration with Vitol will enhance GAIL’s extensive LNG portfolio, playing a crucial role in bridging India’s demand and supply gap for natural gas.”
Vitol CEO Russell Hardy stated: “We are pleased to build on the existing relationship between Vitol and GAIL and to conclude this long-term LNG supply deal together. India is a significant and growing LNG market and we are excited to bring LNG supply from our global LNG portfolio to meet this rising natural gas demand in India.”
To note, GAIL has a presence in India’s gas trading, transmission, LPG production and transmission, LNG re-gasification, petrochemicals, city gas and E&P.
The company owns and operates a network of over 16,000 kilometers (km) of natural gas pipelines on a pan-India basis. Furthermore, it commands around 70% market share in gas transmission and has a gas trading share of over 50% in India.
Vitol has a presence across the spectrum, from oil and gas through to power, renewables and carbon. It has a global LNG portfolio with long-term LNG supply from North America, Africa, the Middle East and Asia, as well as a global fleet of LNG vessels.
In the summer of 2023, Vitol Asia signed a multi-year LNG sale and purchase agreement (SPA) with Merakes LNG Sellers, with the LNG supply to Vitol expected to commence in 2024.
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