GAIL India explores US LNG stake to secure supplies and diversify sources

GAIL India, the state-run gas utility, is exploring opportunities to acquire a minority stake in one of three to four US liquefied natural gas (LNG) export projects. This move comes as part of the company's strategy to diversify its supply sources and bolster long-term LNG procurement for India, particularly in light of recent disruptions in the Strait of Hormuz.

A senior industry executive familiar with the discussions revealed that GAIL is evaluating these projects to enhance supply security and meet growing domestic gas demand. The company currently has an LNG portfolio of approximately 16.56 million metric tonnes per annum (MMTPA), sourced from the US, Qatar, Australia, and other markets.

In its FY26 annual report, GAIL highlighted that tensions around the Strait of Hormuz significantly impacted India's LNG supplies, with 52.5% of imports coming from Qatar and the UAE. The potential investment in US LNG projects is seen as a proactive step to mitigate such risks in the future.