GAIL India is in discussions with three to four US liquefaction and liquefied natural gas (LNG) export projects to acquire a minority stake in one of them, according to industry executives familiar with the development. The move forms part of GAIL’s efforts to diversify its LNG portfolio and strengthen long-term gas supplies for India following disruptions linked to the Strait of Hormuz crisis.
GAIL Seeks Long-Term US LNG Supplies
According to a senior industry executive, GAIL is currently evaluating nearly four US LNG export projects to secure long-term supplies. The company is also open to investing in one of these projects as a minority partner. Such an investment could help GAIL strengthen supply security while supporting India’s growing domestic natural gas demand.
Diversifying GAIL’s Global LNG Portfolio
GAIL already maintains a diversified LNG portfolio of around 16.56 million tons per annum (MMTPA). Its supplies come from several international markets, including the United States, Qatar and Australia. By exploring additional US LNG opportunities, GAIL aims to further diversify its sourcing base and reduce exposure to disruptions in individual supply routes or markets. The company did not respond to an email seeking comment until press time.
Focus on India’s Growing Gas Demand
India’s natural gas demand is expected to remain supported by industries such as fertilisers, city gas distribution, power, refining and petrochemicals. Therefore, securing reliable long-term LNG supplies remains important for meeting domestic requirements. GAIL’s potential investment in a US LNG project could combine upstream participation with long-term offtake, strengthening the company’s position in the global LNG supply chain.
