GAIL Eyes US LNG Stake Amid Trade Talks

GAIL India Ltd has issued a tender to acquire up to a 26% stake in a US liquefied natural gas (LNG) project, coupled with a 15-year gas import deal, as part of India's strategy to reduce its trade surplus with the US. This move aligns with ongoing tariff discussions and follows talks between Indian Prime Minister Narendra Modi and US President Donald Trump, aiming to strengthen energy ties. The US is currently India's second-largest supplier of gas, and the acquisition is part of India's broader plan to diversify its energy sources and double bilateral trade to $500 billion over the next five years. The tender aims to secure 1 million metric tons of LNG annually, starting by 2029-2030, with a potential extension of the deal by five to ten years. The initiative revives a previous attempt stalled due to an export ban by the Biden administration, which was lifted under Trump's leadership. GAIL's strategic move also includes considering the removal of import taxes on US LNG to enhance competitiveness and support India's goal of increasing the share of gas in its energy mix from 6.2% to 15% by 2030.