GAIL to Acquire 26% Stake in US LNG Plant, Import Deal Included
Published • 11 April 2025 at 4:14 PM
US LNG: GAIL's Tender for 26% Stake & Import Deal
Indian state-run gas firm GAIL (India) Ltd has issued a tender to acquire up to a 26% equity stake in a U.S. liquefied natural gas (LNG) project, along with a 15-year import deal for 1 million metric tons per annum. The move supports India’s efforts to strengthen trade ties with the U.S. and reduce its $45.7 billion trade surplus. GAIL is seeking equity in either an existing or upcoming LNG project, scheduled to start deliveries by 2029–2030. The tender, with bids due by April 28, follows the lifting of an export ban on new U.S. LNG projects by the Trump administration, which had previously stalled GAIL's 2023 plans under President Biden. India is the world’s fourth-largest LNG importer and aims to raise natural gas's share in its energy mix from 6.2% to 15% by 2030. GAIL already has long-term contracts for 15.5 million tons of LNG annually, including from the U.S., Australia, and Qatar. The deal may also be extended by up to 10 years, with India considering scrapping import taxes on U.S. LNG to make prices more competitive.
India's GAIL Bids for US LNG Equity to Boost Trade
- GAIL India Ltd has issued a tender to acquire up to a 26% equity stake in a U.S. LNG project.
- The tender includes a 15-year LNG import deal for 1 million metric tons per annum (MTPA).
- The move aims to strengthen trade ties with the United States and reduce India’s $45.7 billion trade surplus with the U.S.
- GAIL is open to acquiring equity in existing or upcoming LNG projects that will begin delivery by 2029–2030.
- Bids are due by April 28 for the proposed U.S. LNG projects.
- The tender follows the lifting of the U.S. LNG export ban by the Trump administration, which had earlier halted GAIL's 2023 plans under President Biden.
- India is currently the fourth-largest LNG importer globally.
- The Indian government aims to increase the share of natural gas in the energy mix from 6.2% to 15% by 2030.
- GAIL already holds long-term LNG contracts for 15.5 million tons annually from U.S., Australia, and Qatar.
- The new deal may be extended by 5 to 10 years.
- India is also considering removing import taxes on U.S. LNG to make it more price competitive.
