GAIL India explores US LNG stake to secure supply
GAIL India, the state-run gas utility, is exploring opportunities to acquire a minority stake in one of several US-based liquefied natural gas (LNG) export projects. This move comes as part of India's broader strategy to secure long-term LNG supplies and mitigate risks associated with geopolitical tensions, particularly in the Strait of Hormuz.
A senior industry executive familiar with the discussions revealed that GAIL is in talks with three to four LNG export projects in the US. The company aims to strengthen its supply security amid rising domestic gas demand. GAIL already has a substantial LNG portfolio, totaling about 16.56 million metric tons per annum (MMTPA), sourced from various global markets, including the US, Qatar, and Australia.
The push for diversification follows disruptions caused by tensions around the Strait of Hormuz, which impacted India's LNG imports. According to GAIL's FY26 annual report, 52.5% of India's LNG imports were sourced from Qatar and the UAE, highlighting the vulnerability of supply routes through the strait.