GAIL Set to Strengthen Energy Supply with Five-Year LNG Deal Starting April

To meet the growing demand of the fastest-growing economy in the world, state-owned GAIL (India) Ltd will begin receiving LNG next month under a five-year, twelve-cargo-per-year agreement with Qatar Energy Trading. "Purchases under the deal will start from April," stated Sandeep Kumar Gupta, managing director and chairman of GAIL.

In December of last year, GAIL awarded Qatar Energy Trading a liquefied natural gas (LNG) purchase tender for the purchase of 12 cargoes annually beginning in April 2025 for a five-year period.

Recently, in addition to the Qatar Energy deal, GAIL has signed long-term LNG procurement deals with suppliers. A long-term deal has been signed with commodity trader Vitol Asia for around 1 million tonne a year for a period of about 10 years, commencing 2026. Under this deal, Vitol will deliver LNG from its global LNG portfolio to GAIL in India on a pan-India basis.

Join PSU Connect on WhatsApp now for quick updates! Whatsapp Channel

Read Also : General Insurance Corporation announces changes in Key Management Personnel

Additionally, GAIL has inked a long-term agreement to buy approximately 0.5 million tonnes of LNG annually from ADNOC Gas in the United Arab Emirates for ten years starting in 2026 throughout India.

The agreements will support India's growing energy demands and align with the country's goal of increasing the proportion of natural gas in the energy basket from the current levels of roughly 6-7 percent to 15% by 2030.

Read Also : HUDCO appoints two Non-Official Independent Directors on Board

According to Gupta, GAIL is considering medium- and long-term LNG contracts in order to supply natural gas to a variety of industries and meet India's growing downstream demand.

The company currently has a 14 million tonne annual LNG portfolio that is well-diversified across a number of indexes. Through long- and mid-term contracts, GAIL will source an additional 7-8 million tonnes of LNG annually until 2030 (2.25 million tonnes have already been signed).

Read Also : IOCL Q4 Results: Net Profit stood at Rs 7,265 crore Margin beats estimates high at 7%