GAIL eyes up to 26% stake in LNG export terminal in US

17 Feb 2023 , 03:14 PM

According to the company’s expression of interest document, GAIL is looking for a stake in a liquefied natural gas (LNG) export terminal in the United States, as well as a long-term supply of one million tonnes of LNG per year.

The company is looking into acquiring up to 26% equity in an existing LNG liquefaction plant or a project that will be completed by 2027. It also intends to obtain 1 million tonnes of LNG per year from the US plant on a free-on-board basis for 15 years, beginning tentatively in the fourth quarter of 2026. The purchase agreement can be extended for an additional 5 or 10 years.

By March 10, US LNG terminal operators or project developers can submit an expression of interest.

GAIL already has long-term contracts with US suppliers for 5.8 million tonnes of LNG per year. It is looking to expand its portfolio in order to meet rising domestic gas demand over the next decade.

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