GAIL Secures 10-Year LNG Supply from Vitol Asia to Bolster Indian Energy Needs.

State-run energy giant GAIL (India) Limited announced on Monday a significant long-term Liquefied Natural Gas (LNG) Sales and Purchase Agreement (SPA) with Vitol Asia Pte Ltd. This crucial deal will see Vitol supply approximately 1 Million Tonnes Per Annum (MTPA) of LNG to GAIL over a period of roughly 10 years, with deliveries set to commence in 2026.

The agreement solidifies GAIL's efforts to expand its long-term LNG portfolio, a strategic move aimed at meeting India's growing energy demands. Under the terms of the SPA, Vitol will draw from its extensive global LNG portfolio to fulfill its commitment to GAIL, India's largest gas utility.

This formal agreement follows a binding term sheet that was initially signed between the two companies in January of last year, laying the groundwork for the current comprehensive SPA.

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

The deal is expected to further bolster India's energy security and ensure a stable supply of natural gas for various sectors across the country.