GAIL(India) Limited and Vitol Asia Pte Ltd have officially signed a long-term liquefied natural gas(LNG) deal today. The agreement entails the supply of approximately one million metric tons of LNG per annum to India for about 10 years, commencing in 2026.
Vitol, a global energy powerhouse, will be responsible for delivering LNG from its extensive global portfolio to GAIL on a pan-India basis. "The deal is poised to play a pivotal role in meeting India's staggering demand for natural gas', as highlighted by Sandeep Kumar Gupta, chairman, and Managing director of GAIL. "This long-term LGN deal with Vitol by GAIL will augment its large LNG portfolio and will significantly contribute to bridging India's demand and supply gap of natural gas", said Gupta, emphasizing the importance of this collaboration.
Vitol's CEO, Russell Hardy, expressed satisfaction in building upon the existing relationship between Vitol and GAIL. He accentuated "India is a significant and looming LNG market, and we are excited to bring LNG supply from our global portfolio to meet this rising natural gas demand in India"
Sanjay Kumar, director at GAIL also highlighted the consolidation of natural gas demand in India as a driving force behind the deal.
On the occasion of signing in Singapore, he disclosed that the LNG tie-up is part of multiple negotiations that GAIL has been conducting with various LNG suppliers for long-term pacts.
GAIL, as a leading natural gas company, holds a presence in India's energy sector, encompassing gas trading, transmission, LPG production, re-gasification, petrochemicals, city gas, and exploration and production(E&P).The company owns an extensive network of over 16,000 km of natural gas pipelines on a pan-India basis, boasting a significant market share in gas transmission and trading.
Whereas, Vitol, a global leaders in the energy sector, commands a diverse presence across oil, gas, power, renewables and carbon. With a massive trading volume of over 7.4 million barrels per day, Vitol handles around 6,000 sea voyages annually. The company's global portfolio including long-term supply span over continents from Europe, Asia and the US.
This collaboration is a synchronized strategy between two industry leaders, contributing to India's energy security and reinforcing the nation's position in the global LNG market.
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