GAIL India Inks Historic 10-Year LNG Pact with Vitol

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In a significant development, GAIL (India) Ltd, a government-operated company, has reached a game-changing 10-year agreement with renowned trader Vitol for the import of liquefied natural gas (LNG). This deal, signed on January 5, 2024, reinforces the commitment to purchase around 1 million metric tons per year (tpy) of LNG from Vitol starting in 2026.

Empowering India’s Natural Gas Ambitions

India is investing a lot in building natural gas infrastructure. They want natural gas to make up 15% of their energy by 2030, which is currently only 6.3%. This is part of a global effort to use cleaner and more sustainable energy.

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The Dynamics of the GAIL-Vitol Collaboration

Vitol, a well-known participant in the worldwide LNG industry, will coordinate the transportation of liquefied natural gas (LNG) from its diverse collection to GAIL at various locations throughout India. This careful distribution plan is expected to greatly improve GAIL’s LNG portfolio.

GAIL’s Chairman, Sandeep Kumar Gupta, highlighted the importance of this long-term LNG agreement. He mentioned that the deal with Vitol will strengthen GAIL’s existing LNG portfolio and play a crucial role in meeting the growing demand for natural gas in India.

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Fueling India’s Rising Gas Consumption

India’s oil minister, Hardeep Singh Puri, says that gas usage in India will increase a lot. They expect it to reach more than 500 million standard cubic meters per day (mmscmd) by 2030. Right now, it’s only 155 mmscmd. This shows how important liquefied natural gas (LNG) will be in meeting India’s growing energy needs.

GAIL’s Impressive LNG Portfolio Expansion

GAIL currently has an LNG portfolio of around 14 million tons per year (tpy) from various countries including the USA, Qatar, Australia, and Russia. This information can be found in its annual report for 2022/23. GAIL is not complacent and is actively in talks with other potential partners to secure more long-term LNG supply agreements.

Sanjay Kumar, who leads the marketing department at GAIL, has confirmed that negotiations are currently taking place. He emphasized the company’s goal of adding 7 to 8 million tons per year of liquefied natural gas (LNG) to its portfolio by 2030. This expansion plan aligns with GAIL’s overall vision to enhance India’s energy security.

Global Collaborations and Future Prospects

In addition to the agreement with Vitol, GAIL is actively seeking partnerships to strengthen its LNG capabilities. This involves considering a 26% stake in an LNG plant based in the United States, which aims to acquire 1 million tons per year of LNG for a period of 15 years. At the same time, GAIL is in talks with important organizations like Abu Dhabi National Oil Co, Russian LNG producer Novatek, and Qatar. These discussions showcase GAIL’s dedication to diversifying its LNG sources and ensuring a reliable supply chain.


GAIL’s collaboration with Vitol is a major milestone for India’s goal of achieving energy self-sufficiency. As India moves towards a future focused on cleaner and more sustainable energy solutions, this partnership represents the significant role that LNG will play in shaping the country’s energy landscape. Through careful planning, international collaborations, and a commitment to excellence, GAIL has positioned itself as a strong contender in the ever-changing LNG industry. By doing so, GAIL significantly contributes to India’s energy security and the attainment of its ambitious energy goals.

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