GAIL Eyes 26% Stake in U.S. LNG Project, Targets Long-Term Supply Deal

India’s leading natural gas company, has issued an Expression of Interest (EOI) to acquire up to 26% equity in a U.S.-based LNG liquefaction project, alongside plans to secure a 15-year LNG supply agreement for 1 MMTPA on a Free on Board (FOB) basis. This initiative aligns with India’s strategic energy agenda. During Prime Minister Narendra Modi’s U.S. visit in February 2025, discussions were held to scale up India’s energy imports from the U.S. from $15 billion to $25 billion in the coming years. According to the EOI, LNG offtake is expected to begin between 2029–2030, depending on the project’s operational readiness. GAIL has stated that the contract tenure could be extended by 5 or 10 years based on mutual agreement. On the equity front, GAIL proposes the following structure: 26% stake in projects with up to 5 MMTPA capacity 15% stake in projects with 5–10 MMTPA capacity 10% stake in projects exceeding 10 MMTPA capacity The equity option may be exercised either in a single entity managing the full value chain or in a holding company that owns the project entirely. GAIL clarified that this EOI is non-binding and represents a strategic intent to deepen LNG sourcing and equity participation overseas. As of March 31, 2025, GAIL’s market cap stands at approximately US$14 billion, with diversified operations across E&P, gas transmission and marketing, LNG imports, petrochemicals, and city gas distribution. Disclaimer: Investing involves risks. Please review all relevant information before making decisions. Past performance does not guarantee future results. I, or my family, associates, or relatives, may have a financial interest in the securities mentioned