State-run GAIL India has signed a long-term deal with United Arab Emirates' Abu Dhabi National Oil Company (ADNOC) to buy 0.5 million tonnes of liquefied natural gas annually for ten years.
Under the agreement, the deliveries will commence from 2026 onwards for a duration of 10 years, across India.
Notably, this is the second long-term liquified natural gas (LNG) purchase deal signed by GAIL this month.
On 5 January, GAIL signed a long term LNG supply deal with commodity trader Vitol Asia, for the annual supply of approximately one million metric tons of LNG 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, they said in a statement.
Both long-term LNG agreements will play a vital role in narrowing the disparity between India's natural gas demand and supply. Additionally, it will propel India towards achieving a 15 per cent share of natural gas in its energy mix.
GAIL, 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.
The company has currently has two long-term agreements to buy a combined 5.8 million MT of LNG from the US on a free-on-board basis and a 2.5 million MT supply contract with Germany's state-owned Securing Energy for Europe GmbH, on a delivered ex-ship basis.
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