GAIL renews LNG contract, decures 4.5 MMTPA from Qatar Energy

In a strategic move to bolster India’s natural gas sector, GAIL (India) Limited, Maharatna PSU, has renewed its long-term LNG contract with Qatar Energy through Petronet LNG Limited (PLL). Under the renewed agreement, GAIL will off-take approximately 4.5 Million Metric Tonnes Per Annum (MMTPA) of Liquefied Natural Gas (LNG).

Reports suggest that the renewed LNG Sale and Purchase Agreement (SPA) solidifies GAIL’s position as India’s leading natural gas company with diversified interests spanning the entire natural gas value chain. The company, with a 60 per cent share in PLL’s volumes, will operate on a substantially back-to-back basis, ensuring a seamless supply chain.

GAIL’s extensive network comprises 16,080 kilometers of natural gas pipelines across the country, emphasizing its significant role in gas transmission. The company commands an impressive 70 per cent market share in gas transmission and boasts a substantial 50 per cent share in gas trading within India.

Moreover, GAIL and its subsidiaries hold a formidable presence in City Gas Distribution, further contributing to its market dominance.

Further, its robust position in conventional energy, GAIL is actively diversifying into renewable energy sources, including solar, wind, and biofuel.

Meanwhile, officials claimed that the successful renewal of the LNG contract signifies state-owned GAIL’s commitment to ensuring a steady and secure supply of natural gas for India’s growing energy needs.

As the company continues to expand its portfolio and presence in both traditional and renewable energy sectors, GAIL remains a pivotal force in shaping India’s energy future.