GAIL (India) Ltd has initiated a strategic move to acquire up to 26% equity in a liquefied natural gas (LNG) project based in the United States. Simultaneously, the company aims to secure a long-term LNG supply deal for 1 million metric tons per annum (MMTPA) for a duration of 15 years, with the flexibility to extend the agreement by an additional 5 to 10 years.

As per the Expression of Interest (EOI) floated by GAIL, the offtake of LNG is anticipated to commence between 2029 and 2030. If the supply is linked to an existing operational project, deliveries could start as early as 2029; however, for new projects, the timeline is expected to begin in 2030. The gas will be sourced on a Free on Board (FOB) basis from entities authorized to market LNG from the respective projects.

The EOI is non-binding, enabling GAIL to explore potential collaborations and agreements for both supply and equity participation under mutually agreed terms. The level of equity GAIL seeks will vary based on the size and ownership structure of the project. The proposed equity limits are as follows:

• For projects with up to 5 MMTPA capacity: up to 26% equity
• For projects between 5 and 10 MMTPA: up to 15% equity
• For projects above 10 MMTPA: up to 10% equity

The final investment decision will depend on whether the LNG value chain is managed by a single entity or divided among multiple stakeholders. In cases where different companies handle different parts of the value chain, GAIL is open to acquiring a stake in a holding company that has full ownership across the entire value chain. Interested parties must submit their bids by April 28, 2025.

This development aligns with India’s broader strategy to deepen its energy partnership with the U.S., a move discussed during Prime Minister Narendra Modi’s 2024 visit to Washington. During that visit, India expressed interest in increasing its oil and gas imports from the U.S. from the current $15 billion to $25 billion. GAIL had put similar plans on hold in 2023 due to a temporary U.S. moratorium on LNG export approvals, which has since been lifted.

As the fourth-largest importer of LNG globally, India is aggressively working to raise the share of natural gas in its energy mix from the current 6.2% to 15% by 2030. This tender is part of GAIL’s broader initiative to secure reliable, long-term LNG supplies and gain a strategic foothold in U.S.-based LNG infrastructure expected to come online by the end of the decade.