According to a company document, GAIL (India) Ltd, India’s largest gas distributor, is looking to buy an equity stake of up to 26% in a liquefied natural gas (LNG) liquefaction plant or project in the United States. Last year, GAIL experienced supply disruptions as a result of Russia-owned Gazprom Marketing and Trading (GMTS) failing to deliver some LNG cargoes as a result of Western sanctions imposed on Moscow for its invasion of Ukraine. According to the Feb. 16 document, the company is “exploring the opportunity” to buy equity from an existing or post-commissioning LNG liquefaction plant or project in the United States, either directly or through its affiliates.
It did not specify how much money the Indian gas distributor had set aside for any potential deal. “In addition, GAIL is interested in sourcing 1 million tonnes per annum LNG from the LNG liquefaction plant or project on a free-on-board basis for a period of 15 years on mutually acceptable terms and conditions,” it said. The document also stated that the LNG supply contract period may be mutually extended by 5 or 10 years, and that supplies will begin tentatively in the fourth quarter of 2026.
The deadline for interested companies to submit bids to GAIL is March 10, according to the document.
GAIL is looking for long-term gas import deals to compensate for disrupted supplies and is in talks with Abu Dhabi National Oil Co (ADNOC) and other parties to source gas to meet local demand, according to GAIL’s head of finance. GAIL signed a 20-year contract with GMTS in 2012 for an average annual purchase of 2.5 million tonnes of LNG.