From Glaciers to Grids—GAIL’s LNG Leap May Boost India’s Clean Energy Push

Image Source: Times of India

GAIL (India) Ltd., the country’s largest gas distributor, entered initial discussions to procure liquefied natural gas (LNG) from the Alaska LNG project, according to sources familiar with the matter. The move signals India’s intent to deepen energy cooperation with the United States while diversifying its LNG sourcing portfolio.

Deal Scope and Strategic Intent

GAIL is reportedly seeking a 15-year LNG supply agreement, with deliveries expected to begin around 2029–2030.
The company aims to secure 1 million metric tons per annum (mtpa) of LNG on a free-on-board basis, with potential to extend the deal by five to ten years.
This initiative aligns with India’s broader goal to increase the share of natural gas in its energy mix to 15% by 2030, up from the current 6.2%.

Geopolitical and Commercial Context

The talks follow the lifting of U.S. export permit restrictions by the Trump administration, which had previously stalled similar efforts under President Biden.
GAIL’s interest in the Alaska LNG project complements its existing long-term contracts with U.S. suppliers like Cheniere Energy and Berkshire Hathaway Energy.
India is also considering removing import taxes on U.S. LNG to make it more price competitive and help reduce its $45.7 billion trade surplus with Washington.

Industry Insight

“GAIL’s pursuit of U.S. LNG reflects a strategic pivot toward stable, long-term energy partnerships that support India’s growth and geopolitical balance,” said an energy analyst at TradeWinds.

Sources: Offshore Technology, Business Standard, Times of India, TradeWinds, Economic Times