(Commonwealth_India) TotalEnergies and Gujarat State Petroleum Corporation Limited (GSPC), a state-owned oil and gas enterprise, have solidified a significant partnership by signing a long-term Sale and Purchase Agreement (SPA), set to commence in 2026. This agreement is poised to span a decade, enhancing energy collaboration between the two companies while addressing the growing energy needs in India.
As part of this strategic agreement, TotalEnergies will supply GSPC with 400,000 tons of liquefied natural gas (LNG) annually, with six cargoes being delivered each year throughout the contract. This supply will be sourced from TotalEnergies’ extensive global LNG portfolio and will be delivered to terminals on India’s west coast, primarily serving customers in the state of Gujarat.
The LNG supplied by TotalEnergies will predominantly cater to GSPC’s industrial clients across various sectors. Moreover, the agreement will also support the energy needs of Indian households, businesses, and service stations that operate vehicles running on Compressed Natural Gas (CNG), including the country’s iconic auto-rickshaws. With the growing demand for cleaner energy alternatives, this supply of LNG is expected to bolster the adoption of CNG across the country, contributing to a more sustainable and eco-friendly energy transition.
In a statement, Gregory Joffroy, Senior Vice President of LNG at TotalEnergies, expressed enthusiasm over the partnership: “We are delighted to have been chosen by GSPC to supply them with LNG in India. This new deal not only underscores TotalEnergies’ leadership in the LNG sector but also emphasizes our commitment to supporting India’s energy transition and ensuring the security of supply for its growing energy demands.”
The collaboration is also seen as a critical move in addressing the natural gas supply-demand gap that is becoming increasingly apparent across India, particularly in the state of Gujarat. The region, which has been experiencing rising industrial and residential energy consumption, faces challenges in securing a steady supply of natural gas. GSPC, as a key player in the Indian energy landscape, is seeking to bridge this gap by securing a reliable and competitive long-term LNG supply, making this partnership with TotalEnergies especially timely.
Milind Torawane, Managing Director of GSPC, highlighted the strategic value of the deal, saying, “This agreement marks a major milestone in our strategy to secure competitive LNG on a long-term basis, serving to bridge the growing natural gas demand-supply gap in Gujarat and across India. Partnering with TotalEnergies, one of the largest LNG players in the world, aligns perfectly with our vision to strengthen GSPC’s position as a leader in gas trading and expand our role in the global LNG market. This partnership also allows us to build a strong long-term portfolio that will benefit not only GSPC but also the broader energy ecosystem in India.”
Furthermore, the deal provides GSPC with a unique opportunity to leverage its existing infrastructure, which includes gas transmission and distribution systems, to enhance the delivery and accessibility of LNG to both urban and rural areas. This collaboration will contribute to the optimization of GSPC’s operations in the gas value chain, further reinforcing the company’s role in India’s energy infrastructure.
In addition to meeting the country’s industrial and domestic needs, the deal is part of a broader trend of increasing reliance on natural gas as a cleaner alternative to traditional fuels. The Indian government has set ambitious goals to increase the share of natural gas in its overall energy mix as part of its commitment to reducing carbon emissions and addressing climate change. This deal between TotalEnergies and GSPC is expected to play a pivotal role in supporting these national energy objectives, providing a reliable and sustainable source of fuel for various sectors.
The signing of this long-term LNG supply agreement is a significant step in strengthening energy ties between TotalEnergies and GSPC, contributing to the ongoing transformation of India’s energy landscape. With a focus on the future, this collaboration plays a crucial role in fulfilling the nation’s expanding energy requirements and propelling its shift towards a more sustainable and secure energy future.
