GAIL Goes Global: LNG Pact with Vitol Ignites India's Energy Goals

Image Source: The Economic Times

India's biggest gas utility firm, GAIL (India) Limited, has signed a historic long-term LNG Sales and Purchase Agreement (SPA) with Vitol Asia Pte Ltd for 1 million metric tonnes per annum (MMTPA) of liquefied natural gas every year. The agreement, signed on July 14, 2025, in Singapore, will be for approximately 10 years from 2026.

Key Highlights

The deal is a follow-up on a binding term sheet reached in January 2024, as part of GAIL's strategy of diversifying its LNG portfolio

Vitol will supply LNG from its diversified fleet worldwide, delivering in India on a pan-India basis.

The deal supplements India's goal to increase the proportion of natural gas in the energy basket to 15 percent by 2030 from 6 percent at present

Strategic Significance

GAIL is attempting to capitalize on the India natural gas market demand-supply imbalance

The partnership improves the competitive and sustainable delivery capability of GAIL to its multicultural customer base

India was the world's fourth-largest importer of LNG in 2024 and is expected to see demand increase gradually over the next decade

Infrastructure and Market Impact

GAIL possesses more than 16,000 km of gas pipelines and controls 70 percent of India's gas transmission business.

The company is also pursuing various pipeline projects to increase distribution coverage

Vitol's global fleet of LNG and diversified supply sources ensure safe and flexible supply that meets India's increasing energy requirements

Sources: Sarkaritel, Vitol.com, GAIL Press Release, The Hindu BusinessLine, The Hindu.