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

NEW DELHI: Amid ongoing tariff talks, India is stepping on the gasoline — actually — to cut back its trade surplus with the US within the hope of an early deal. State-run gasoline utility GAIL has invited expressions of curiosity for buying upto 26% stake in a US LNG (liquefied pure gasoline) mission and a 15-year gasoline sourcing contract.
The transfer comes inside two months of talks between prime minister Narendra Modi and US president Donald trump in Washington, the place each agreed to develop power ties. India provided to extend its buy of US oil and gasoline from $15 billion in 2024 to $25 billion within the coming years, contributing in the direction of lowering the $45.7 billion trade surplus.
India meets 85% of its oil requirement and 50% of gasoline wants by way of imports. The US is India’s fifth largest oil provider of oil and second largest supply of gasoline. Increased US power imports matches effectively with the strategic pursuits of either side, notably New Delhi’s bid to diversify its power souring, and enhance efforts to double the bilateral trade to $500 billion over the following 5 years.
Aligned with this roadmap, GAIL is seeking to take fairness in new or operational initiatives with capacities ranging between 5-10 million tonnes each year or extra and a long-term contract for sourcing a million tonne of LNG yearly. The Trump administration cleared the way in which for such offers by lifting a ban on export permits of latest LNG initiatives imposed by predecessor Joe Biden.
GAIL isn’t any stranger to the American shale business because it had acquired stakes in US initiatives in the course of the peak of shale increase. It was additionally the primary Indian firm to have signed pioneering long-term gasoline supply contracts in 2013 when no one considered the US as an choice.
The newest acquisition transfer comes amid the corporate’s bid to promote its complete 20% stake within the Eagle Ford shale mission in Texas, due to no revenue on account of low gasoline costs.GAIL had acquired the stake in 2011 from Carrizo Oil & Gas Inc.