State-owned gas utility GAIL (India) Ltd is set to increase its liquefied natural gas (LNG) imports from 2026.
The company has signed two 10-year supply agreements with Vitol Asia Pte Ltd and Adnoc Gas, totalling 1.5 million tonnes per annum.
“As a leading natural gas player, your company recognises the importance of ensuring supply security,” said GAIL chairman Sandeep Kumar Gupta at the company’s AGM.
“In this direction, we have signed two 10-year LNG supply agreements.”
GAIL has added a new LNG carrier to its fleet.
The company will import LNG in cryogenic ships and convert it to gas for distribution to power plants, fertiliser units and city gas operators.
India imports roughly half of its gas needs, and GAIL operates several LNG import facilities across the country.
The company is also exploring opportunities to invest in a US-based LNG plant and has renewed a supply agreement with Qatar Energy LNG.
GAIL is also expanding its presence in the petrochemical industry.
The company is investing in projects to produce polypropylene, PTA and isopropyl alcohol.
Additionally, GAIL is exploring the feasibility of setting up a ethane cracker and a coal gasification project.
Gupta said the PSU is setting up a 500,000 tonnes polypropylene facility at Usar in Maharashtra another 1.25 million tonnes plant at Pata in Uttar Pradesh.
The company has installed a green hydrogen electrolyser and is working on setting up an ethanol plant.
The company is also expanding its natural gas and LPG pipeline infrastructure.