New Delhi [India], July 15 (ANI): GAIL (India) Limited has signed a long-term Liquefied Natural Gas (LNG) Sales and Purchase Agreement (SPA) with Vitol Asia Pte. Ltd., according to an official statement by the company released on Tuesday.

This agreement follows the binding Term Sheet that was signed between the two companies in January 2024.

As per the agreement, GAIL will supply approximately 1 Million Metric Tonnes Per Annum (MMTPA) of LNG for a period of about 10 years. The supply is scheduled to begin in 2026. Under this deal, Vitol will deliver LNG to GAIL from its global LNG portfolio.

Sanjay Kumar, Director (Marketing) at GAIL, expressed satisfaction over the partnership and 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.'

India has emerged as the world's fourth-largest importer of LNG in 2024. The demand for LNG in the country is expected to increase steadily over the next decade.

To support this growing need, the Government of India has set a target to raise the share of natural gas in the country's primary energy mix from the current 6 to 15 per cent by 2030.

In line with this vision, India's LNG regasification capacity has grown significantly, rising from 21 MMTPA in 2014 to nearly double that figure now.

Commenting on the agreement, Jay Ng, Chief Financial Officer at Vitol Asia and Executive Committee member, said, 'Vitol is honoured to extend its relationship with GAIL to a long term LNG supply contract. 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.'

GAIL is a Maharatna Central Public Sector Enterprise and is India's leading company in natural gas transmission and distribution. Its operations include a vast network of gas pipelines, processing and petrochemical plants, upstream oil and gas interests, and LNG regasification terminals across India.

Vitol is a major global player in energy and commodities trading. The company not only trades energy products but also has significant investments in energy infrastructure worldwide, with over $13 billion invested in long-term assets. (ANI)