GAIL’s chairman expects global LNG prices to drop after 2026 as new projects in the US and elsewhere boost supply. Credit: Piotr Swat/Shutterstock.

GAIL India is reviving its plan to acquire a stake in a US liquefied natural gas (LNG) plant or secure a long-term supply agreement, reported Reuters, citing GAIL chairman Sandeep Kumar Gupta.

This move comes after the US administration under president Donald Trump ended a ban on export permits for new projects.

Gupta told Reuters ahead of India Energy Week: “Their (Washington’s) decision to lift the ban will improve LNG supply and we will revive our plans to either buy a stake or buy US LNG under long-term deals.”

He also added that the company would initiate a tendering process for long-term LNG purchases to make a decision.

India, currently the world’s fourth-largest LNG importer, has set a goal to increase the share of gas in its energy mix to 15% by 2030, up from 6.2%.

This plan was previously halted in 2023 when then-president Joe Biden paused approvals for pending and future applications to export LNG from new projects.

Access the most comprehensive Company Profiles
on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

View profiles in store

Company Profile – free
sample

Your download email will arrive shortly

We are confident about the
unique
quality of our Company Profiles. However, we want you to make the most
beneficial
decision for your business, so we offer a free sample that you can download by
submitting the below form

By GlobalData

Country *
UK
USA
Afghanistan
Åland Islands
Albania
Algeria
American Samoa
Andorra
Angola
Anguilla
Antarctica
Antigua and Barbuda
Argentina
Armenia
Aruba
Australia
Austria
Azerbaijan
Bahamas
Bahrain
Bangladesh
Barbados
Belarus
Belgium
Belize
Benin
Bermuda
Bhutan
Bolivia
Bonaire, Sint
Eustatius
and
Saba
Bosnia and Herzegovina

Botswana
Bouvet Island
Brazil
British Indian Ocean
Territory
Brunei Darussalam
Bulgaria
Burkina Faso
Burundi
Cambodia
Cameroon
Canada
Cape Verde
Cayman Islands
Central African Republic

Chad
Chile
China
Christmas Island
Cocos Islands
Colombia
Comoros
Congo
Democratic Republic
of
the Congo
Cook Islands
Costa Rica
Côte d”Ivoire
Croatia
Cuba
Curaçao
Cyprus
Czech Republic
Denmark
Djibouti
Dominica
Dominican Republic
Ecuador
Egypt
El Salvador
Equatorial Guinea
Eritrea
Estonia
Ethiopia
Falkland Islands
Faroe Islands
Fiji
Finland
France
French Guiana
French Polynesia
French Southern
Territories

Gabon
Gambia
Georgia
Germany
Ghana
Gibraltar
Greece
Greenland
Grenada
Guadeloupe
Guam
Guatemala
Guernsey
Guinea
Guinea-Bissau
Guyana
Haiti
Heard Island and
McDonald
Islands

Holy See
Honduras
Hong Kong
Hungary
Iceland
India
Indonesia
Iran
Iraq
Ireland
Isle of Man
Israel
Italy
Jamaica
Japan
Jersey
Jordan
Kazakhstan
Kenya
Kiribati
North Korea
South Korea
Kuwait
Kyrgyzstan
Lao
Latvia
Lebanon
Lesotho
Liberia
Libyan Arab Jamahiriya

Liechtenstein
Lithuania
Luxembourg
Macao

Macedonia,
The
Former
Yugoslav Republic of
Madagascar
Malawi
Malaysia
Maldives
Mali
Malta
Marshall Islands
Martinique
Mauritania
Mauritius
Mayotte
Mexico
Micronesia
Moldova
Monaco
Mongolia
Montenegro
Montserrat
Morocco
Mozambique
Myanmar
Namibia
Nauru
Nepal
Netherlands
New Caledonia
New Zealand
Nicaragua
Niger
Nigeria
Niue
Norfolk Island
Northern Mariana Islands

Norway
Oman
Pakistan
Palau
Palestinian Territory
Panama
Papua New Guinea
Paraguay
Peru
Philippines
Pitcairn
Poland
Portugal
Puerto Rico
Qatar
Réunion
Romania
Russian Federation
Rwanda
Saint
Helena,
Ascension and Tristan da Cunha
Saint Kitts and Nevis
Saint Lucia
Saint Pierre and Miquelon

Saint Vincent and
The
Grenadines

Samoa
San Marino
Sao Tome and Principe
Saudi Arabia
Senegal
Serbia
Seychelles
Sierra Leone
Singapore
Slovakia
Slovenia
Solomon Islands
Somalia
South Africa
South
Georgia
and The South
Sandwich Islands
Spain
Sri Lanka
Sudan
Suriname
Svalbard and Jan Mayen

Swaziland
Sweden
Switzerland
Syrian Arab Republic
Taiwan
Tajikistan
Tanzania
Thailand
Timor-Leste
Togo
Tokelau
Tonga
Trinidad and Tobago
Tunisia
Turkey
Turkmenistan
Turks and Caicos Islands

Tuvalu
Uganda
Ukraine
United Arab Emirates
US Minor Outlying Islands

Uruguay
Uzbekistan
Vanuatu
Venezuela
Vietnam
British Virgin Islands

US Virgin Islands
Wallis and Futuna
Western Sahara
Yemen
Zambia
Zimbabwe
Kosovo

Industry *

Academia & Education
Aerospace, Defense &
Security
Agriculture
Asset Management
Automotive
Banking & Payments
Chemicals
Construction
Consumer
Foodservice
Government, trade bodies
and NGOs
Health & Fitness
Hospitals & Healthcare

HR, Staffing &
Recruitment
Insurance
Investment Banking
Legal Services
Management Consulting
Marketing & Advertising

Media & Publishing
Medical Devices
Mining
Oil & Gas
Packaging
Pharmaceuticals
Power & Utilities
Private Equity
Real Estate
Retail
Sport
Technology
Telecom
Transportation &
Logistics
Travel, Tourism &
Hospitality
Venture Capital

Tick here to opt out of curated industry news, reports, and event updates from Offshore Technology.

Submit and
download

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

However, with the policy reversal, GAIL is now actively looking to expand its portfolio.

Gupta believes that global LNG prices could decline after 2026 as new projects in the US and other regions begin to contribute to the supply.

The statement comes at a time when Asia spot LNG prices have reached a two-month high, closely following a surge in European gas prices.

Analysts predict that increased supply from the US and Qatar will help to stabilise prices later in the decade.

The US is set to nearly double LNG export capacity by 2030, while Qatar aims to increase liquefaction capacity from 77 to 142 million tonnes per year by 2027.

In India, gas consumption is expected to surge, with Indian Oil Minister Hardeep Singh Puri forecasting a rise to more than 500 million standard cubic metres per day (mscm/d) by 2030.

The country’s consumption has already increased by approximately 12.5% to around 185 mscm/d in the fiscal year 2024, as reported by the Oil Ministry’s Petroleum Planning and Analysis Cell.

Gupta also mentioned that India’s gas consumption could rise sharply if the government includes gas in the goods and services tax regime.

This change would replace the current multiple taxes on gas, potentially making prices cheaper and uniform across India.

GAIL is already contracted to buy 15.5 million tonnes per annum (mtpa) of LNG, which includes supplies from the US, Qatar, Australia, and traders like Vitol and Adnoc.

Its long-term agreements with US companies involve the purchase of 5.8mtpa of LNG, shared between Berkshire Hathaway Energy’s Cove Point plant and Cheniere Energy’s Sabine Pass site in Louisiana.

Additionally, GAIL awarded a five-year tender to Qatar for the monthly purchase of one LNG cargo starting April 2025, as per sources from December 2024.