GAIL to Receive LNG from Qatar Energy Starting April
State-owned gas utility GAIL (India) Ltd will begin receiving liquefied natural gas (LNG) from Qatar Energy Trading in April under a five-year agreement for 12 cargoes annually. The move aligns with India's strategy to expand its natural gas consumption to 15% of its energy mix by 2030, up from the current 6-7%.
GAIL Chairman & MD Sandeep Kumar Gupta confirmed the deliveries would start as per the December 2023 tender awarded to Qatar Energy Trading.
Apart from Qatar, GAIL has secured long-term LNG supply deals, including:
Vitol Asia: 1 million tonnes per year for 10 years starting 2026
ADNOC Gas (UAE): 0.5 million tonnes per year for 10 years from 2026
Other major Indian firms like Indian Oil Corporation (IOC) have also signed LNG agreements with ADNOC LNG (1.2 million tonnes annually for 14 years) and TotalEnergies (0.8 million tonnes annually for 10 years).
GAIL currently manages an LNG portfolio of 14 million tonnes per annum and plans to secure an additional 7-8 million tonnes by 2030. Its existing US-based contracts with Sabine Pass and Cove Point are linked to Henry Hub pricing.
The company operates over 16,000 km of gas pipelines, holding a 70% market share in transmission and over 50% in gas trading.
With India's energy demand surging, these agreements will ensure a stable and diversified supply of LNG for the coming decade.
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