GAIL: Revitalized Plans to Acquire US LNG Stake
Deal News | Feb 10, 2025 | Zawya
GAIL India Ltd, the country's top gas distributor, plans to pursue acquiring a stake in a U.S. liquefied natural gas (LNG) plant or forge long-term supply deals following the lifting of a ban on new LNG export permits by the Trump administration. Chairman Sandeep Kumar Gupta highlighted that this decision aligns with India's goal of raising the gas share in its energy mix from 6.2% to 15% by 2030. Previously stalled efforts to acquire up to 26% in a U.S. LNG facility will be reconsidered, especially as global LNG prices might decrease post-2026 due to increased supply from the U.S. and Qatar. India, the world's fourth-largest LNG importer, sees its consumption potentially rising significantly, contingent on domestic taxation reforms. GAIL's current LNG procurement stands at 15.5 million tons per year from multiple sources, including 5.8 million tpy from U.S. suppliers.
Sectors
- Energy
- Natural Gas
Geography
- India – GAIL India Ltd is the primary company discussed, and the energy sector developments are tied to India's growing natural gas consumption.
- United States – The U.S. is a prospective location for GAIL's LNG stake acquisition and supply deals, following policy changes facilitating exports.
Industry
- Energy – The article discusses GAIL's plans to increase its natural gas imports and investments in LNG plants, a key sector within the energy industry.
- Natural Gas – Focus on liquefied natural gas (LNG) supply deals and investments, pertinent to the natural gas sector.
Financials
- 15.5 million tpy – GAIL's contracted LNG purchase volume, including from U.S. suppliers.
- 5.8 million tpy – Specific volume of LNG GAIL is purchasing from U.S. companies, namely Cheniere Energy and Berkshire Hathaway Energy.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| GAIL India Ltd | Target Company | Company | India's top gas distributor seeking investment and long-term LNG supply from the U.S. |
| U.S. Government | Policy Influencer | Government | Lifted the ban on export permits, facilitating LNG transactions for GAIL. |
| Cheniere Energy | LNG Supplier | Company | Part of GAIL's LNG purchasing deals from the U.S. |
| Berkshire Hathaway Energy | LNG Supplier | Company | Part of GAIL's LNG purchasing deals from the U.S. |
| Sandeep Kumar Gupta | Chairman | Person | Chairman of GAIL India Ltd, providing strategic direction for the company's LNG investments. |