GAIL India has issued a tender seeking up to a 26% stake in a US liquefied natural gas (LNG) project, coupled with a 15-year gas import agreement.
This move aligns with capital city New Delhi’s strategy to reduce its trade surplus with Washington. The tender invites bids for equity in an existing LNG liquefaction project or a new one to be operational by 2030.
The US is currently India’s second-largest LNG supplier, with Qatar leading.
GAIL, India’s largest gas distributor, plans to procure one million tonnes per annum (mtpa) of LNG from a US plant on a free-on-board basis for 15 years, with an option to extend the deal by five to ten years.
GAIL aims to commence LNG imports from the US project by 2029–30, with the bid submission deadline set for 28 April.
To enhance US energy imports, India is considering eliminating import taxes on US LNG to make it more price-competitive and help reduce its $45.7bn (Rs3.93trn) trade surplus with the US.
GAIL had previously halted a similar process in 2023 due to export permit bans under then-President Joe Biden, but the tender has been revived following the lifting of the ban by Donald Trump’s administration.
India ranks as the world’s fourth-largest LNG importer and aims to increase the share of gas in its energy mix to 15% by 2030, up from the current 6.2%.
GAIL is contracted to purchase 15.5mtpa of LNG from sources including Australia, Qatar, the US, and traders Vitol and Adnoc, as per its 2023–24 annual report.
GAIL’s long-term US deals involve acquiring 5.8mtpa of LNG, split between Berkshire Hathaway Energy’s Cove Point plant and Cheniere Energy’s Sabine Pass site in Louisiana.
In February, GAIL announced the revival of its plan to acquire a stake in a US LNG plant or secure a long-term supply agreement.
This move comes after the Trump administration ended a ban on export permits for new projects.