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GAIL India seeks additional long term LNG

GAIL (India) is seeking long-term import deals for LNG amounting to 5.5 million tons per year, raising its capacity to 21 mln tons per year by 2030. GAIL officials told media that the company hopes to complete a long term deal before the end of current year.

The country's largest gas pipeline utility has deals for supply of 15.53 million ton of LNG per year, having recently signed supply deals with trader Vitol and Adnoc.

Gail’s contracted LNG volumes include supplies from the US, Qatar and Australia, according to its annual report. Indian Prime Minister Narendra Modi wants to raise the share of gas in the energy mix to 15 per cent by 2030 from about 6 per cent — with a heavy reliance on imported LNG.

GAIL is hoping that the long term LNG prices would soften once the new liquefaction projects come on line and starts commercial production by the end of 2026 or early part of 2027.

editor@lngworldwide.com