GAIL to buy 26 per cent stake in US LNG project
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New Delhi: India’s largest gas company GAIL is looking to buy up to 26 per cent stake in a US LNG project. The company has taken this decision in view of increasing the sources of supply to meet the increasing demand. GAIL (India) Ltd could not get LNG contracted from Russia-owned Gazprom Marketing and Trading (GMTS) last year due to Western sanctions on Moscow over its invasion of Ukraine. After which their supply was interrupted. The company has floated a tender seeking expression of interest (EoI) from US-based Liquefied Natural Gas (LNG) liquefaction plants.
Existing plants or plants to be commissioned by 2027 can submit EOI. Liquefaction plants convert natural gas into liquid form so that it can be transported by sea. According to the tender document, the company is looking to buy one million tonnes of LNG per year from the plant for 15 years, beginning the last quarter of 2026. GAIL is set to extend the supply contract for another five to 10 years. The last date for submission of EOI is March 10. GAIL already has a contract to buy 5.8 million tonnes of LNG from the US and is looking for more supplies to meet the growing demand from the economy with supplies from Russia dwindling.
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