Amid trade talks, GAIL goes scouting for US LNG stake, 15-year supply deal

New Delhi: In the midst of ongoing tariff dialogue, India is stepping on gas – literally – to reduce its business surplus with the US in the hope of a initial deal. State-Run Gas Utility Gayle has invited the expression of interest to get US LNG (liquefied natural gas) project and a 26% stake in the 15-year gas sourcing contract.
The move comes within two months of the conversation between Prime Minister Narendra Modi and US President Donald Trump in Washington, where the two agreed to expand the energy relations. India increased the purchase of US oil and gas from $ 15 billion to $ 25 billion in 2024 in the coming years, which contributed to reducing the trade surplus of $ 45.7 billion.
India meets 85% of its oil requirement and 50% of gas needs through imports. America is India’s fifth largest oil supplier and second largest source of gas. Increased American energy imports fits well with strategic interests from both sides, especially to give its energy sour variety to New Delhi’s bid, and promote efforts to double bilateral trade in the next five years in $ 500 billion.
The alliance with this roadmap is looking to take equity in new or operating projects, which has a capacity between a long-term contract for 5–10 million tonnes per year or more year or a million tonnes of LNG annually. The Trump administration cleared the way for such deals by banning the export permits of new LNG projects set up by the previous Biden.
The Gayle is not a stranger for the American shell industry as it had bet in American projects during the peak of Shell Boom. It was also the first Indian company to signed long -term gas supply contracts in 2013, when no one thought as an alternative to America.
The latest acquisition step comes between the company’s bid to sell its entire 20% stake in the Eagle Ford Shell Project in Texas, as there was no benefit due to low gas prices. Gal won the stake in Kerizo Oil and Gas Inc. in 2011.