GAIL (India) Limited has entered into a long-term Sales and Purchase Agreement (SPA) for Liquefied Natural Gas (LNG) with Vitol Asia Pte. Ltd., as per reports. This agreement follows the binding Term Sheet that was established between the two firms in January 2024.

According to the agreement, GAIL will provide approximately 1 Million Metric Tonnes Per Annum (MMTPA) of LNG over a span of about 10 years, with supply set to commence in 2026. Under this arrangement, Vitol will supply LNG to GAIL from its global LNG resources.

Sanjay Kumar, Director (Marketing) at GAIL, expressed satisfaction over the partnership and says, "GAIL is expanding its long-term LNG portfolio to meet demand growth. We are pleased to partner with Vitol Asia Pte. Ltd., and this agreement represents a key milestone in reinforcing GAIL's capability to reliably serve its diverse and evolving customer base."

India has emerged as the world's fourth-largest importer of LNG in 2024. The demand for LNG in the country is expected to increase steadily over the next decade.

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To support this growing need, the Government of India has set a target to raise the share of natural gas in the country's primary energy mix from the current 6 to 15 percent by 2030.

Jay Ng, Chief Financial Officer at Vitol Asia and Executive Committee member says, "Vitol is honoured to extend its relationship with GAIL to a long term LNG supply contract. The growing Indian market is core to Vitol's strategy and Vitol's diversified portfolio enables it to offer India a stable supply of cleaner and competitive energy."

GAIL is a Maharatna Central Public Sector Enterprise and stands as India's foremost company in the transmission and distribution of natural gas. Its activities encompass an extensive network of gas pipelines, processing and petrochemical facilities, upstream oil and gas ventures, as well as LNG regasification terminals throughout India.

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Vitol is a prominent global entity in energy and commodities trading. The firm not only engages in trading energy products but also holds substantial investments in energy infrastructure globally, with over $13 billion dedicated to long-term assets.