NEW DELHI: State-owned GAIL (India) Limited announced on Friday the signing of a long-term LNG deal with the commodity trader Vital Asia Pte Ltd. The agreement involves the supply of approximately one million metric tons of LNG per annum to India for about 10 years, commencing in 2026.
As per the deal, Vital will deliver LNG from its global LNG portfolio to GAIL in India on a pan-India basis.
"This long-term LNG deal with Vital by GAIL will augment its large Liquefied Natural Gas (LNG) portfolio and will contribute to bridging India's demand and supply gap of natural gas,” said Sandeep Kumar Gupta, GAIL Chairman and Managing Director.
GAIL commands approximately 70% market share in gas transmission and holds a gas trading share of over 50% in India. The company owns and operates a network of over 16,000 km of natural gas pipelines on a pan-India basis and is concurrently working on the execution of multiple pipeline projects to further enhance its reach and infrastructure.
Vital has a global LNG portfolio with long-term LNG supply from North America, Africa, the Middle East, and Asia, a global fleet of LNG vessels and an experienced LNG team across Asia, Europe and the US. In 2022, Vital physically delivered approximately 14 Mtpa of LNG.
"We are pleased to build on the existing relationship between Vital and GAIL and to conclude this long-term LNG supply deal together. India is a significant and growing LNG market and we are excited to bring LNG supply from our global LNG portfolio to meet this rising natural gas demand in India,” said Russell Hardy, Vital CEO.