GAIL Initiates Preliminary Discussions to Import LNG from Trump-Supported Alaska Project

As per news reports, India’s state-run gas utility GAIL is engaged in early-stage discussions with Glenfarne for sourcing LNG from the proposed Alaska LNG project. This move aligns with India’s strategy to diversify energy sources and increase imports from the U.S. to balance trade relations.

India-U.S. Energy Ties Gain Momentum 

GAIL is evaluating the economic viability of procuring liquefied natural gas from Alaska LNG, a $44 billion project supported by former U.S. President Donald Trump. The talks are centred around pricing, transport costs, and future contract commitments. GAIL already imports 5.8 million tons of LNG annually from the U.S. and aims to strengthen this quantity as Indian demand for cleaner energy rises.

Alaska LNG Project: Capacity and Progress

The Alaska LNG project is designed to export up to 20 million metric tons of LNG annually via a 765-mile pipeline. Glenfarne, the project developer, anticipates a final investment decision by the last quarter of 2025. Operational commencement is targeted by 2030. Thailand’s PTT has already inked a 20-year deal for 2 million tons annually, indicating growing international interest.

Dabhol LNG Terminal Expansion and GAIL's Future Plans

GAIL is preparing to ramp up Dabhol terminal’s capacity from 5 million to 6.3 million tons per year by mid-2027, reaching 12.5 million tons by 2031-32. This infrastructure development aligns with India’s ambition to raise natural gas’s share in its energy mix from the current 6% to 15% by 2030, reducing reliance on coal and oil.

Read More: GAIL Signs 10-Year LNG Deal with Vitol Asia Pte Ltd for 1 MMTPA Supply!

Geopolitical and Trade Implications of LNG Talks

India's interest in Alaska LNG forms part of broader trade negotiations with the U.S., aiming to reduce its trade surplus and avoid potential tariffs. These energy partnerships not only strengthen bilateral ties but also contribute to India’s strategic energy security goals. GAIL also seeks equity participation in existing or upcoming LNG ventures to solidify long-term supplies.

GAIL (India) Share Price Performance

On July 16, 2025, GAIL (India) share price opened at ₹184.69 on NSE, below the previous close of ₹184.71. During the day, it surged to ₹185.18 and dipped to ₹183.40. The stock is trading at ₹183.95 as of 1:22 PM. The stock registered a marginal change of -0.41%.

Over the past week, it has declined by 0.93%, over the past month, it has declined by 0.95%, and over the past 3 months, it has declined by 0.41%.

Conclusion

GAIL’s exploratory dialogue with Glenfarne for sourcing LNG from the Alaska project reflects India's widening energy ambitions. With domestic terminal expansion in progress and a rising U.S. import portfolio, India is moving decisively toward its 2030 energy transition targets.

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