GAIL (India) Limited has invited Expressions of Interest (EOI) to acquire up to a 26% equity stake in a US-based liquefied natural gas (LNG) project, along with entering into a 15-year LNG supply agreement.
This move aligns with India’s broader strategy to enhance energy ties with the United States, especially following Prime Minister Narendra Modi’s February visit to Washington, where discussions included increasing India’s oil and gas imports from the US.
According to the EOI document, GAIL is looking to source 1 million metric tonnes per annum (MMTPA) of LNG from either an operational or upcoming US liquefaction project. The deal would be on a Free on Board (FOB) basis, with supply expected to start between 2029 and 2030. There is also flexibility in extending the contract for an additional 5 to 10 years based on mutual agreement.
GAIL will have the option to acquire equity in either the company directly operating the project or in a holding company that owns the entire value chain, including asset ownership, LNG sales rights, and operations and maintenance. The percentage of equity GAIL can acquire depends on the project’s total capacity:
- Up to 5 MMTPA: 26% stake
- Between 5–10 MMTPA: 15% stake
- Over 10 MMTPA: 10% stake
The EOI clarifies that this proposal is currently non-binding and reflects GAIL’s intent to explore both equity participation and long-term LNG sourcing opportunities.
GAIL, India’s largest natural gas firm, operates across the full gas value chain from exploration and production to LNG imports, gas transmission, petrochemicals, and city gas distribution. It is publicly traded on major exchanges in India and also listed overseas via global depository receipts, with a market cap of about $14 billion as of March 2025.
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