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India’s Gail signs LNG deal with Vitol: Correction

  • Märkte: Natural gas
  • 05.01.24

Corrects description of SEFE as former subsidiary

Indian state-controlled gas distributor Gail has signed a term LNG deal with global commodity trading firm Vitol Asia to buy around 1mn t/yr for 10 years, starting in 2026.

This is Gail's sixth term deal, it said today, in addition to its 14mn t/yr of term LNG contracts with multiple producers around the world.

It has two term LNG deals totalling 5.8mn t/yr with the US, which include 3.5mn t/yr from the US' Sabine Pass terminal and 2.3mn t/yr from the Cove Point terminal. It also has up to 2.85mn t/yr with former Gazprom subsidiary Securing Energy For Europe (SEFE) on a delivered basis.

Other term deals include 4.8mn t/yr from RasGas Qatar and 400,000 t/yr from Australia. These contracts are jointly held with fellow Indian state-controlled importer Petronet LNG.

Supply disruptions from SEFE in May 2022-February 2023 prompted Gail to sue SEFE for $1.82bn. Gail initiated legal action in December at the London Court of International Arbitration because SEFE failed to supply contracted LNG cargoes, which resumed in March 2023.

Gail expects India's gas demand to rise and has been looking to secure more term deals.

It plans to expand its natural gas transmission volumes by 12pc to more than 120mn m³/d in April 2023-March 2024, as the government's plan to increase the share of natural gas in its primary energy mix is targeted to rise to 15pc by 2030 from around 6pc in 2022.


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