Singapore, January 4, 2024: GAIL (India) Limited and Vitol Asia Pte Ltd. have formally announced a long-term LNG deal for the supply of approximately one million metric tons of LNG per annum. The deal is set to span over a period of about 10 years, starting from 2026. Vitol will be responsible for delivering LNG from its global portfolio to GAIL in India on a pan-India basis.
Augmenting GAIL’s LNG Portfolio
GAIL’s Chairman and Managing Director, Mr. Sandeep Kumar Gupta, emphasized that this long-term LNG deal with Vital will significantly enhance GAIL’s extensive Liquefied Natural Gas (LNG) portfolio. The deal aims to contribute to bridging India’s demand and supply gap of natural gas.
Excitement Over Growing LNG Market in India
Vitol’s CEO, Mr. Russell Hardy, expressed pleasure in building on the existing relationship between Vitol and GAIL, describing India as a significant and growing LNG market. He is excited to bring LNG supply from Vitol’s global portfolio to meet the rising natural gas demand in India.
Strategic LNG Tie-Up in Response to Consolidated Demand
GAIL’s Director (Marketing), Mr. Sanjay Kumar, stated that the deal aligns with GAIL’s strategy as the demand for natural gas in India consolidates. This long-term LNG tie-up is part of multiple negotiations GAIL has been conducting with various LNG suppliers.
GAIL’s Presence in India’s Gas Sector
GAIL, as a leading natural gas company, has a formidable presence in India’s gas trading, transmission, LPG production & transmission, LNG regasification, petrochemicals, city gas, and exploration & production. The company commands a significant market share in gas transmission and gas trading in India.
Vitol’s Global Energy Leadership
Vitol is a global leader in the energy sector, involved in oil and gas, power, renewables, and carbon. Trading 7.4 million barrels per day of crude oil and products, Vitol has a diverse energy portfolio and a global LNG presence with long-term LNG supply agreements across various regions.
About Vitol Asia Pte Ltd.
Vitol is a prominent player in the energy sector, with a broad presence spanning oil, gas, power, renewables, and carbon. With a global reach and a diversified energy portfolio, Vitol serves clients worldwide, delivering energy solutions and contributing to the global energy landscape.
Note: The signing of the deal took place in Singapore.
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