Gupta Warns of Energy Security Threat Amid LNG Supply Chain Disruptions

GAIL's Chairman and Managing Director Deepak Gupta emphasized the importance of energy security at the company's 42nd Annual General Meeting. He stated that geopolitical tensions and disruptions to global LNG supply chains have exposed vulnerabilities in energy markets, making energy security as crucial as the transition to cleaner energy.

Gupta noted that developments during FY 2025-26 highlighted the need for countries and energy companies to diversify supply sources and strengthen infrastructure. The resulting volatility in LNG prices, freight rates, and supply availability reinforced this need.

India's reliance on a concentrated supply of LNG through the Strait of Hormuz has made it vulnerable to disruptions. GAIL's LNG sourcing portfolio stands at 16.56 million metric tonnes per annum (MMTPA), with long-term contracts and market-linked procurement.

The company imported 132 LNG cargoes, including seven spot cargoes, during FY 2025-26, maintaining supplies to priority customers amid global market volatility. GAIL has a fleet of nine LNG vessels, including five under long-term charter, aiming to improve logistics control and supply reliability.