State run GAIL (India) Limited and Vitol Asia Pte Ltd, have announced the signing of a long term Liquefied Natural Gas (LNG) deal into India for a supply of approximately one million metric tons of LNG per annum for a period of about 10 years, commencing 2026. Under this deal, Vitol will deliver LNG from its global LNG portfolio to GAIL in India on a pan-India basis.
As a leading natural gas company gas trading, GAIL has formidable presence in India’s transmission, LPG production & transmission company.
This long term LNG deal with Vitol by GAIL will augment its large (LNG) portfolio and will contribute to bridging India’s demand and supply gap of natural gas. India is a significant and growing LNG market and Vitol Asia’s LNG supply from its global portfolio will meet this rising natural gas demand in India. India’s leading gas producer is doing this deal as demand for natural gas in India is getting consolidated and this LNG tie-up is part of the multiple negotiations which GAIL has been carrying on with various LNG suppliers for long term deals.
The company which owns and operates a network of over 16,000 km of natural gas pipelines on pan India basis is working concurrently on execution of multiple pipeline projects to further enhance the spread. With around 70 per cent market share in gas transmission, GAIL has a gas trading share of over 50 per cent in India.
Founded in Rotterdam in 1966, today Vitol is invested in energy assets globally including: 17 m m3 of storage globally, circa 500 k b/d of refining capacity, over 7,000 service stations and a growing portfolio of transitional and renewable energy assets. It trades 7.4 million barrels per day of crude oil and products, and charters circa 6,000 sea voyages every year.
In another development, GAIL and TruAlt Bioenergy Limited, the largest producer of ethanol in India, have signed an agreement on GAIL’s equity participation in TruAlt’s joint venture company Leafinti Bioenergy which owns and operates India’s second Compressed Bio Gas (CBG) plant. TruAlt Bioenergy and GAIL India shareholding in the JV would be 51 per cent and 49 per cent respectively. The Investment in setting up the CBG plants will exceed over USD 72 million and will be funded through a combination of debt and equity.
The JV company will process over 600 million kgs of organic waste like agricultural residue, sugarcane press mud, spent wash (waste generated during ethanol production) and other decomposable waste per annum, to produce over 33 million kgs of CBG, nearly 20 million kgs of Solid Fermented Organic Manure (SFOM) and over 30 million kgs of Liquid Fermented Organic Manure
(LFOM) per annum.