Gail and Vitol sign 10-year LNG supply contract
08 Jan 2024
Gail (India) Limited and Vitol Asia Pte Ltd on Friday announced the signing of a long term LNG supply contract, under which the Switzerland-based Dutch trading company will supply a million tonnes of LNG annually to India for a period of 10 years, starting from 2026.
Vitol will deliver LNG from its global LNG portfolio to Gail on a pan-India basis.
“This long term LNG supply deal with Vitol 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,” Gail chairman and managing director Sandeep Kumar Gupta said.
“We are pleased to build on the existing relationship between Vitol 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,” Vitol CEO Russell Hardy said.
GAIL is a leader in India’s natural gas market with presence in gas trading, transmission, LPG production and transmission, LNG re-gasification, petrochemicals, city gas and E&P. Gail owns and operates a network of over 16,000 km of natural gas pipelines on pan India basis. Gail commands around 70 per cent market share in gas transmission and over 50 per cent share in gas trading in India.
Vitol is a leader in the energy sector with a presence across the spectrum, covering oil and gas, power, renewables and carbon. It trades 7.4 million barrels per day of crude oil and products, and charters circa 6,000 sea voyages every year.
Vitol also on Friday announced the consolidation of its shipping activities into a Singaporean company, called Vitol International Shipping.
Vitol International Shipping will be the new name for Mansel which is Vitol’s Singapore-based shipping company.
There will be no change to LSC, Vitol’s technical ship management company, which will continue to operate from Riga, Latvia.
