New Delhi: State-run gas utility GAIL India is in talks with three to four US liquefaction and liquefied natural gas (LNG) export projects to secure long-term supplies and may acquire a minority stake in one of the projects, according to industry executives aware of the development.
The move comes as India seeks to diversify its LNG sourcing after disruptions around the Strait of Hormuz highlighted the country’s dependence on supplies from the Middle East.
GAIL is also looking to strengthen its supply security amid rising domestic demand for natural gas.
GAIL in Talks With US LNG Export Projects
GAIL is currently discussing potential long-term LNG supply arrangements with around four US LNG export projects, according to a senior industry executive familiar with the talks.
The company is also open to investing in one of these projects through a minority stake, which could provide GAIL with greater access to long-term LNG supplies.
The discussions are focused on:
- Securing long-term LNG supplies
- Diversifying GAIL’s international sourcing portfolio
- Reducing exposure to supply disruptions
- Meeting rising domestic gas demand
- Exploring potential equity investment in an LNG project
GAIL India had not responded to an email seeking comment on the development until press time.
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Strait of Hormuz Crisis Highlights LNG Import Risks
The move to explore additional US LNG supplies comes after disruptions linked to tensions around the Strait of Hormuz exposed vulnerabilities in India’s LNG import supply chain.
The Strait of Hormuz is a key global energy transit route, and disruptions in the region can affect shipments of oil and LNG to major importing countries.
GAIL highlighted the impact of the situation in its FY26 annual report, noting that tensions around the Strait of Hormuz affected India’s LNG supplies.
According to the report, 52.5% of India’s LNG imports were sourced from Qatar and the UAE, highlighting the concentration of India’s LNG imports in the Middle East.
The latest discussions with US LNG projects could therefore help GAIL build a more geographically diversified supply portfolio.
GAIL Already Has 16.56 MMTPA LNG Portfolio
GAIL already has a sizeable international LNG sourcing portfolio.
The company currently has an LNG portfolio of around 16.56 million tonnes per annum (MMTPA), with supplies sourced from countries including:
- United States
- Qatar
- Australia
- Other international markets
Adding further US LNG supplies could strengthen the company’s long-term sourcing flexibility and reduce its dependence on any single geographic region.
Why GAIL Is Looking at US LNG
The United States has emerged as a major LNG supplier to global markets, offering buyers an additional source of long-term gas supplies.
For GAIL, securing US LNG could support its efforts to balance supply security with growing domestic demand.
A potential minority investment in an LNG export project could also give the company a strategic presence in the upstream side of the LNG value chain while securing access to future production.
The talks are still at an early stage, and there is no confirmed decision yet on whether GAIL will acquire a stake in any particular project.
Rising Domestic Gas Demand Drives Supply Diversification
India’s natural gas demand is expected to remain important across sectors such as fertiliser, city gas distribution, power and industrial use.
GAIL, as India’s largest natural gas transmission and marketing company, plays a major role in importing, transporting and supplying natural gas across the country.
Against this backdrop, securing reliable long-term LNG supplies from multiple regions can help GAIL manage potential disruptions and meet future demand.
The potential US investment is therefore part of a broader strategy to diversify LNG sourcing and strengthen India’s energy security.
About GAIL India
GAIL (India) Limited is India’s largest natural gas transmission and marketing company and a Maharatna Central Public Sector Enterprise under the Ministry of Petroleum and Natural Gas. The company operates across natural gas transmission, marketing, processing, petrochemicals, LNG and renewable energy. GAIL owns and operates a large natural gas pipeline network and plays a key role in India’s gas-based energy infrastructure.
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