GAIL Signs 10-Year LNG Purchase Contract With Vitol

New Delhi, July 15, 2025 – GAIL (India) Limited (NSE: GAIL, BSE: 532155) has entered into a long-term LNG Sales and Purchase Agreement (SPA) with Vitol Asia Pte. Ltd. for the purchase of 1 Million Metric Tonnes Per Annum (MMTPA) of Liquefied Natural Gas (LNG), commencing 2026.

Strategic Deal to Support India’s Energy Transition

GAIL and Vitol have now sealed a long-term LNG supply deal, following their initial agreement in January 2024. The partnership will last for around 10 years. As part of the deal, Vitol will deliver LNG to GAIL every year from its global supply network. This steady flow of LNG is expected to support India’s efforts to shift towards cleaner and more sustainable energy sources.

Sanjay Kumar, Director (Marketing), GAIL, said:

“GAIL is expanding its long-term LNG portfolio to meet demand growth. We are pleased to partner with Vitol Asia Pte. Ltd., and this agreement represents a key milestone in reinforcing GAIL’s capability to reliably serve its diverse and evolving customer base.”

Jay Ng, CFO, Vitol Asia, added:

“The growing Indian market is core to Vitol’s strategy and Vitol’s diversified portfolio enables it to offer India a stable supply of cleaner and competitive energy.”

Industry & Policy Context

India was the world’s fourth-largest importer of LNG in 2024. The country now aims to increase the share of natural gas in its energy mix from 6% to 15% by 2030.

The agreement with Vitol is a key step toward reaching that goal. To support this shift, India has been expanding its infrastructure. Since 2014, the country’s LNG regasification capacity has nearly doubled from 21 MMTPA to current levels showing strong growth in line with rising demand.

GAIL (India) Stock Performance

GAIL (India) shares are trading at ₹138.81, representing a 0.093% gain as of July 15, 2025, at 1:39 PM IST. GAIL (India) shares have dipped 22% in the last year, down 3.81% in the year-to-date, and 4.08% in the previous month.

About GAIL (India)

GAIL (India) Limited is a Maharatna Central Public Sector Enterprise and the country’s foremost natural gas transmission and distribution company. It operates an extensive network of gas pipelines, processing facilities, and LNG regasification terminals, while also participating in upstream exploration and renewable energy initiatives.

About Vitol

Vitol, founded in Rotterdam in 1966, is a leading energy and commodities firm with 2024 revenues of $331 billion. It delivered 18 million metric tonnes of LNG globally last year and operates from over 40 offices worldwide, supplying energy to national utilities, industrials, and multinational corporations.

REF: https://nsearchives.nseindia.com/corporate/Himanshugail_15072025115923_PR15072025.pdf

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations