Gail to start import LNG under new contract from 2026

State-owned gas utility Gail (India) Ltd will start importing LNG under two new contracts from 2026 and has added one more ship to transport the fuel, its Chairman Sandeep Kumar Gupta said.

This year in January, the company has signed back-to-back deals to import liquefied natural gas (LNG).

It first signed a deal to import 1 million tonnes of LNG from Dutch energy trader Vitol for 10 years and then another agreement to buy 0.5 million tonnes per annum of LNG from UAE's ADNOC-Gas.

"As a leading natural gas player, your company recognizes the importance of ensuring supply security. In this direction, we have signed two 10-year LNG supply agreements, starting in 2026: 1 million tonnes from Vitol Asia Pte Ltd, Singapore, and 0.5 million tonnes from ADNOC Gas, UAE," he said at the company's annual general meeting.

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Gail will import LNG in cryogenic ships and turn it back into its gaseous state before piping it to users that may include power plants for generating electricity, fertilizer units for producing crop nutrients, or city gas operators for selling to automobiles as CNG or piping to households kitchens for cooking.

It operates a 5 million tonnes a year LNG import facility at Dabhol in Maharashtra and has leased space at terminals in Gujarat and Odisha.

It is scouting for a 26 percent stake in a US-based LNG plant to source 1 million tonnes a year of LNG for 15 years.

 

 

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The company has hired the long-term LNG vessel, Gail Urja, and has entered into a 14-year time charter party agreement for a newly built LNG carrier.

"Additionally, Gail's volume of 4.5 million tonnes per annum is now renewed under LNG SPA signed between Qatar Energy LNG and Petronet LNG Ltd, with supplies commencing in 2028 for 20 years," he said.

"Gail's 500,000 tonnes PDHPP project at Usar (in Maharashtra), 60,000 poly-propylene plant at Pata (Uttar Pradesh), 1.25 million tonnes PTA plant at GMPL, Mangaluru and 50,000 tonnes Isopropyl Alcohol (IPA) Project at Usar will diversify and expand Gail's existing petrochemical portfolio and provide robust growth in years to come," he said.

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