GAIL (India) Limited, the country’s leading natural gas utility, has signed a 10-year liquefied natural gas (LNG) sales and purchase agreement with Vitol Asia, marking a significant step in its long-term energy sourcing strategy. The deal includes the supply of 1 million tonnes per annum (MTPA) of LNG starting from 2026, strengthening GAIL’s LNG portfolio as India accelerates toward a gas-based energy economy.

LNG Agreement with Vitol

Under the agreement, Vitol will supply LNG to GAIL from its diversified global LNG portfolio. Sanjay Kumar, Director (Marketing) at GAIL, emphasized that this strategic partnership will enhance GAIL’s capacity to meet rising domestic demand through reliable long-term sourcing.

Gas Supply Extension with Oil India

In a parallel move, GAIL has extended its existing gas sales agreement with Oil India Ltd by 15 years, effective 1 July 2025. The pact includes the supply of up to 900,000 standard cubic meters per day (SCMD) of natural gas from Oil India’s Bakhri Tibba block in Rajasthan.

Strategic Importance

These two agreements form part of GAIL’s broader efforts to secure energy reliability, support India’s clean energy goals, and ensure supply diversification. The long-term supply contracts not only bolster GAIL’s business operations but also reinforce its critical role in India’s evolving natural gas market.