French oil major TotalEnergies has agreed to supply Indian oil and gas company Gujarat State Petroleum Corporation (GSPC) with 400,000 tonnes (t) of liquefied natural gas (LNG) per year from 2026.

The companies have signed a sale and purchase agreement (SPA) for a term of ten years.

Sourced from TotalEnergies' global portfolio and delivered to terminals on India's west coast, the LNG will primarily serve industrial customers of GSPC.

TotalEnergies LNG senior vice-president Gregory Joffroy said: “We are delighted to have been chosen by GSPC to supply them with LNG in India. This new deal underscores TotalEnergies' leadership in the LNG domain and commitment to India’s energy transition and security of supply.”

The LNG will also be supplied to Indian households, businesses and compressed natural gas (CNG) service stations, including those for auto-rickshaws.

GSPC managing director Milind Torawane added: “This agreement marks a major step towards 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. Partnering with TotalEnergies, one of the largest LNG players in the world, aligns with GSPC’s strategy to build up its long-term portfolio and become a leading Indian player in gas trading.

“This deal will further strengthen GSPC’s portfolio and its operations in the gas value chain, leveraging GSPC Group’s transmission and distribution infrastructure.”

Natural gas is said to play a key role in India’s energy transition. It improves air quality by decreasing greenhouse gas emissions and pollution.

GSPC, along with its other group companies, delivers one-third of the natural gas demand in the Indian state of Gujarat. It operates more than 800 CNG stations.

The natural gas supplied by GSPC caters to 2.3 million households and 20,000 industrial and commercial clients.