GAIL India eyes minority stake in US LNG project

Mumbai - GAIL India, the state-run gas utility, is exploring the possibility of acquiring a minority stake in one of several US liquefaction and liquefied natural gas (LNG) export projects. This move comes as the company seeks to diversify its energy sources and ensure a steady supply of LNG for India, particularly in light of the recent crisis in the Strait of Hormuz.

Industry executives familiar with the situation tell us that GAIL is engaged in discussions with nearly four different LNG export projects, indicating a strong interest in bolstering its long-term LNG supply sources. A senior industry source confirms that the company is open to investing in these projects as it works to secure reliable supply and meet the growing domestic gas demand in India.

While GAIL has not yet provided a comment on the matter, the company is already well-established in the LNG market, with a portfolio of approximately 16.56 MMTPA (million metric tons per annum) sourced from various global markets including the US, Qatar, and Australia. This recent interest in LNG projects follows a period of supply disruption caused by tensions around the Strait of Hormuz, which forced India to increase its reliance on Qatar and the UAE for nearly half of its LNG imports.