Indian gas firm GAIL seeks 26% stake in US LNG
GAIL India Ltd. issued a tender Friday for a maximum 26% stake in an American liquefied gas project, along with a 15 year gas import agreement. This will help New Delhi to reduce its trade surplus.
India is racing to be the first country to sign a deal with the United States after President Donald Trump announced sweeping tariffs. This has led to a trade conflict with China, and other countries are now trying to negotiate.
Trump has made it clear that he views U.S. gasoline as a bargaining tool.
The document on GAIL's website shows that the company is seeking to purchase equity in a project for LNG liquefaction, either an existing project or one new. Both projects would be completed by 2030.
India is one of the fastest-growing economies in the world. The United States is the second largest LNG supplier. Qatar is India's largest LNG supplier.
GAIL, the state-run company, wants to buy 1 million tons of LNG per year from a U.S. plant on a "free-on-board" basis over a 15-year period. The deal, the company said, could be extended for another five to ten years.
GAIL also stated that it wants to begin taking LNG from U.S. projects by 2029-2030. The deadline for U.S. bids to be submitted is April 28.
India may also consider scrapping its import taxes on U.S. Liquefied Natural Gas to help reduce its $45.7 billion surplus trade with the U.S.
GAIL was forced to stop a similar project in 2023 in order to purchase a stake in an American LNG plant, after the then-President Joe Biden prohibited export permits for LNG projects that were pending or new.
Trump's administration lifted the ban on the Indian company, and it has now revived its tender.
India is currently the fourth largest LNG exporter in the world. It aims to increase the gas share to 15% of the energy mix by 2030, up from the current 6.2%.
GAIL has signed a contract to purchase 15.5 million tonnes of LNG annually, including LNG from Australia, Qatar, the United States, and traders Vitol Adnoc, as per its annual report 2023-24.
The long-term agreements with American companies include the purchase by Berkshire Hathaway Energy of Cove Point and Cheniere Energy of Sabine Pass in Louisiana of 5,8 million tons of LNG per year. (Reporting and editing by Barbara Lewis; Nidhi verma)
(source: Reuters)
