GAIL Signs 10-Year LNG Supply Deal With Vitol Asia Starting 2026

16 Jul 2025 , 10:12 AM

GAIL (India) Ltd. has inked a fresh 10-year deal with Vitol Asia Pte. Ltd. to secure around 1 million metric tonnes of LNG each year, starting in 2026. Under this agreement, Vitol will deliver LNG from its global supply base, adding long-term stability to GAIL’s sourcing strategy.

Speaking on the deal, GAIL’s Director of Marketing, Sanjay Kumar, said the company is actively building up its long-term LNG portfolio to stay ahead of India’s growing energy needs.

Jay Ng, CFO of Vitol Asia, noted that India plays a central role in the company’s plans and said their diversified global operations allow them to offer consistent, competitive energy to the Indian market. GAIL, in an exchange update, said India ranked fourth globally among LNG importers in 2024, and demand is likely to climb steadily over the coming years.

The government is aiming to push natural gas’s share in the national energy mix from the current 6% to 15% by 2030, creating a strong case for long-term supply tie-ups.

The country’s LNG regasification capacity has nearly doubled since 2014, growing from 21 MMTPA to much higher levels today. In a separate development, GAIL may be set for a boost in revenue from its pipeline business.

Sources familiar with the matter said the Petroleum and Natural Gas Regulatory Board (PNGRB) is considering a tariff hike of nearly 20%, which could take the current rate of ₹58.59 per mmBtu up to around ₹70.

GAIL had proposed a higher revision of ₹78, as per sources the company would still consider a final rate in the ₹70–₹71 range to be acceptable.

AK Tiwari, a PNGRB board member, confirmed that the final order may be issued in the next one to two months, and added that the board would approach the matter with a balanced outlook. If cleared, the hike could serve as a significant earnings trigger for GAIL, especially as it continues to grow its nationwide gas transmission network to support India’s clean energy transition.

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