State-owned gas utility GAIL Ltd has entered initial discussions to import liquefied natural gas (LNG) from the proposed Alaska LNG project.
India is in talks with energy developer Glenfarne as it looks to boost energy imports from the United States. The move is aimed at reducing its trade surplus with Washington and is part of a wider effort to strike a trade deal that could help avoid steep US tariffs, as per media.
However, sources familiar with the matter said the viability of any deal will hinge on the landed cost of gas from Alaska, which is a key factor in GAIL’s decision-making process.
While Glenfarne declined to confirm discussions with GAIL, it told Reuters in an that “Alaska LNG’s growing commercial momentum reflects the project’s competitive economic and geostrategic advantages.”
The $44-billion Alaska LNG project, which has struggled to get off the ground for over a decade and was backed by US President Donald Trump, recently gained attention after Thailand’s state-owned PTT signed a 20-year deal to purchase 2 million tonnes of LNG annually.
So far, around 50 companies have expressed interest in the project, which is expected to export up to 20 million tonnes of LNG per year. A final investment decision on the first phase, a 765-mile pipeline transporting gas from Alaska’s northern fields to the Anchorage region, is expected later this year.
India, the world’s fourth-largest LNG importer, is aiming to increase the share of natural gas in its energy mix from 6% to 15% by 2030 as part of its efforts to cut carbon emissions. GAIL, which already holds long-term contracts for 15.5 million tonnes of LNG annually, including 5.8 million tonnes from the US, is planning to expand its domestic import capacity.
The company intends to raise the capacity of its Dabhol terminal from 5 million tonnes to 6.3 million tonnes by mid-2027 and to 12.5 million tonnes by 2031-32, media reported.
Earlier this year, GAIL also sought bids to acquire equity in an existing or upcoming LNG project, due for commissioning by 2030.
