GAIL Expands LNG Contracts and Fleet to Ensure Energy Security and Growth

State-owned gas utility GAIL (India) Ltd is set to start importing LNG under new contracts from 2026, adding a new ship for transport. GAIL signed deals to import 1.5 million tonnes of LNG annually from Vitol and ADNOC-Gas. The firm aims for energy transition, diversification, and infrastructure growth.

State-owned gas utility GAIL (India) Ltd is stepping up its energy security measures by importing liquefied natural gas (LNG) under two new contracts starting from 2026. The company has also expanded its LNG fleet by adding a new vessel, according to Chairman Sandeep Kumar Gupta.

In January this year, GAIL signed back-to-back agreements to import 1 million tonnes of LNG annually from Dutch energy trader Vitol for ten years, and another half-million-tonne deal with UAE's ADNOC-Gas. This strategic move aims to secure a continuous supply of LNG for diverse applications including electricity generation, fertilizer production, and household cooking.

The company's comprehensive strategy doesn't stop at importing LNG. GAIL is actively seeking a 26% stake in a US-based LNG plant to source an additional 1 million tonnes per year for 15 years. Further, GAIL has renewed its existing LNG volume with Qatar Energy LNG for another 20 years starting in 2028.

Gupta highlighted at the annual general meeting that GAIL is diversifying its portfolio in the petrochemical sector with several projects in Maharashtra and Uttar Pradesh. The company is also focusing on renewable energy by aiming to achieve net zero carbon emissions by 2035, and pioneering green hydrogen and ethanol projects in India.

GAIL's infrastructure and diversification efforts underline its commitment to providing a stable energy supply and supporting India's energy transition goals.

(With inputs from agencies.)