TotalEnergies secures 10-year LNG supply deal with Gujarat State Petroleum Corporation

TotalEnergies has signed a decade-long agreement to supply liquefied natural gas (LNG) to Gujarat State Petroleum Corporation Limited (GSPC), reinforcing India’s commitment to expanding its natural gas supply. The deal, announced at India Energy Week in New Delhi, will see TotalEnergies deliver 400,000 tons of LNG annually—equivalent to six cargoes per year—starting in 2026.

This agreement highlights the increasing importance of natural gas supply in India’s energy transition, as the country seeks to reduce reliance on coal and oil while promoting cleaner alternatives. The LNG shipments will be sourced from TotalEnergies’ global portfolio and delivered to terminals on India’s west coast. These supplies will cater to industrial clients, residential households, businesses, and Compressed Natural Gas (CNG) stations serving vehicles such as auto-rickshaws.

Why Is Gujarat State Petroleum Corporation Expanding Its LNG Portfolio?

Gujarat State Petroleum Corporation, one of India’s largest state-owned gas trading entities, plays a crucial role in the India energy market by supplying a significant portion of Gujarat’s natural gas needs. The company, part of the GSPC Group, operates across the LNG terminal, gas transmission, distribution, and power generation sectors. With over 800 CNG stations and a network that serves 2.3 million households and 20,000 industrial and commercial clients, GSPC has positioned itself as a leader in the natural gas supply chain.

This deal with TotalEnergies aligns with GSPC’s strategy to secure competitively priced LNG on a long-term basis. The company aims to strengthen its market presence and ensure a steady supply of liquefied natural gas, particularly as demand for clean energy sources continues to grow. GSPC’s Managing Director, Milind Torawane, stated that partnering with TotalEnergies—one of the world’s largest LNG suppliers—enhances the company’s ability to meet rising energy demands while leveraging its extensive transmission and distribution infrastructure.

How Does TotalEnergies Benefit from India’s Growing LNG Demand?

For TotalEnergies, this agreement reinforces its strategic position in the India energy market, which is projected to witness a substantial increase in natural gas supply needs over the coming years. India’s government has set ambitious targets to boost natural gas consumption from its current share of approximately 6% to 15% of the total energy mix by 2030.

Gregory Joffroy, Senior Vice President of LNG at TotalEnergies, emphasized that this deal highlights the company’s leadership in the global LNG market. He noted that securing a long-term supply contract with GSPC strengthens TotalEnergies’ foothold in India while contributing to the country’s energy security and transition efforts.

TotalEnergies has been actively expanding its presence in Asia’s LNG sector. By signing this agreement, the company not only strengthens its portfolio but also gains access to one of the fastest-growing LNG markets. India’s rising demand for liquefied natural gas provides significant growth opportunities for global suppliers, particularly as industries, transport, and residential consumers increasingly shift towards cleaner fuels.

What Role Does Natural Gas Play in India’s Energy Transition?

As India pushes forward with its clean energy initiatives, natural gas supply is set to play a pivotal role in reducing carbon emissions and improving air quality. LNG is a key transitional fuel that provides a cleaner alternative to coal and oil for industrial use, power generation, residential heating, and transportation.

The Indian government has been investing heavily in LNG infrastructure, including expanding import terminals, increasing pipeline networks, and promoting gas-based power plants. The TotalEnergies-GSPC deal is expected to support these efforts by ensuring a stable supply of LNG, which will be crucial for industries and households transitioning away from more polluting energy sources.

India’s industrial sector, which relies heavily on energy-intensive processes, stands to benefit significantly from increased natural gas supply. Factories, manufacturing units, and refineries will have access to a stable LNG source, reducing operational costs and emissions. Similarly, the transportation sector is witnessing a surge in CNG adoption, with auto-rickshaws, taxis, and buses increasingly using natural gas as a fuel alternative.

What Are the Broader Implications of the TotalEnergies-GSPC Deal?

This agreement is expected to have far-reaching implications beyond just meeting immediate natural gas supply needs. As one of India’s largest LNG contracts, it could pave the way for similar long-term agreements with other international suppliers. By securing LNG at competitive rates, GSPC strengthens its ability to maintain price stability in the domestic gas market, benefiting industrial and residential consumers alike.

Additionally, this deal reinforces India’s position as a key player in the global LNG trade. With demand rising steadily, international energy companies are increasingly looking to India as a major market for liquefied natural gas exports. The partnership between TotalEnergies and GSPC reflects growing confidence in India’s long-term energy strategy and commitment to cleaner fuel adoption.

As the country continues to expand its LNG infrastructure and gas distribution network, industry analysts predict that demand for imported LNG will rise sharply in the coming years. This deal not only secures GSPC’s natural gas supply for the next decade but also supports India’s broader vision of achieving a sustainable and diversified energy mix.

The TotalEnergies-GSPC agreement represents a significant milestone in India’s energy market, ensuring a long-term natural gas supply that will support industrial, residential, and transport sectors. As India works toward its energy transition goals, LNG will play a critical role in reducing emissions and enhancing energy security. With this partnership, TotalEnergies strengthens its presence in one of the world’s fastest-growing LNG markets, while GSPC secures a stable supply to meet the country’s increasing gas demand.