IEW 2025: GSPC inks 10-year LNG deal with TotalEnergies for 400,000 mt/year

State-owned oil and gas company Gujarat State Petroleum Corp. Ltd. signed a 10-year sale and purchase agreement with France's TotalEnergies for 400,000 mt/year of LNG starting in 2026, TotalEnergies said Feb. 12 on the sidelines of the India Energy Week 2025.

The companies did not disclose the pricing details of the deal. In October 2024, S&P Global Commodity Insights reported that GSPC and TotalEnergies were close to signing an agreement, with the price likely around a slope of 120% to Henry Hub plus a constant of about $4.2/MMBtu.

The volume equates to six cargoes per year, TotalEnergies said in a statement. The deal underscores TotalEnergies' commitment to India's energy transition and security of supply, said the company's Senior Vice President, LNG, Gregory Joffroy.

The LNG, sourced from TotalEnergies' global portfolio and delivered to terminals on India's west coast, will primarily serve GSPC's industrial customers. It will also be supplied to Indian households for domestic use, businesses and service stations for vehicles running on CNG, such as auto-rickshaws, according to TotalEnergies.

"This agreement marks a major step toward reinforcing GSPC's strategy to secure competitive LNG on a long-term basis, helping to bridge the growing natural gas demand-supply deficit in Gujarat and across India," GSPC Managing Director Milind Torawane said.

"This deal will further strengthen GSPC's portfolio and its operations in the gas value chain, leveraging GSPC Group's transmission and distribution infrastructure," Torawane said.

GSPC, along with its other group companies, supplies one-third of the natural gas demand in the Indian state of Gujarat. It caters to 2.3 million households and 20,000 industrial and commercial clients. It operates over 800 CNG stations.

Platts, part of Commodity Insights, assessed March JKM at $16.497/MMBtu and JKM April derivatives at $16.29/MMBtu on Feb. 12. Platts assessed the West India marker for March at $16.325/MMBtu, at a discount of 17.2 cents/MMBtu to the March JKM assessment.

India is the fourth-largest LNG buyer globally. Industry sources at the IEW 2025 said that India has immense potential to grow its gas-based economy, with the power sector and city gas distribution sector set to boost gas consumption prospects.

India's LNG imports rose 21% year over year to about 27 million mt/year in 2024, according to Commodity Insights data.