GAIL India Ltd. has issued a tender seeking up to 26% equity in a U.S. liquefied natural gas (LNG) project. The tender also includes a fifteen-year LNG supply agreement, positioning GAIL to secure a stable fuel source through the next decade.
Targeting Future-Ready LNG Infrastructure
The company is open to acquiring equity in either an existing or greenfield U.S. LNG liquefaction project, provided it reaches completion by 2030. GAIL plans to begin importing LNG from the selected facility by 2029–2030, aligning with India’s goal of increasing natural gas in its energy mix.
Import Plans to Tackle Trade Imbalance
The initiative forms part of India’s broader strategy to narrow its $45.7 billion trade surplus with the United States. GAIL’s move comes at a time when Washington views LNG exports as a diplomatic and economic lever. The government is even considering removing import duties on U.S. LNG as part of its effort to further reduce the trade gap, a step that would also support New Delhi’s push toward cleaner energy sources.
U.S. LNG: A Strategic Choice
The United States currently ranks as India’s second-largest LNG supplier, after Qatar, and offers strategic advantages in terms of price, political alignment, and long-term availability. GAIL is looking to import one million tons of LNG annually on a free-on-board (FOB) basis for 15 years, with an option to extend the contract by an additional 5 to 10 years.
The deadline for U.S.-based project submissions is April 28. This gives American companies a limited window to partner with India’s largest gas utility.
India’s LNG Ambitions Gain Momentum
India, already the fourth-largest LNG importer globally, is rapidly expanding its gas-based infrastructure. The government has set a target to increase the share of natural gas in the country’s energy mix to 15% by 2030, up from the current 6.2%.
GAIL already holds long-term agreements for 15.5 million tonnes per annum (MTPA) of LNG. The supplies come from countries like Australia, Qatar, and the U.S., as well as global traders such as Vitol and Adnoc. These include key supply deals with Cheniere Energy’s Sabine Pass terminal in Louisiana and Berkshire Hathaway Energy’s Cove Point facility.
Looking Ahead
With this tender, GAIL is not only securing future LNG supplies but also reinforcing India’s role in the global energy market. As reported by worldenergynews.com, the move supports energy diversification and economic diplomacy. It sets the stage for a stronger U.S.-India partnership in the years ahead.
