GAIL Plans To Buy Up To 26% Equity Stake In LNG Projects In United States
SINGAPORE (Reuters) - India's largest gas distributor GAIL (India) Ltd is looking to buy an equity stake of up to 26% in a liquefied natural gas (LNG) liquefaction plant or project in the United States, according to a document issued by the company.
GAIL had run into supply disruptions last year after Russia-owned Gazprom Marketing and Trading (GMTS) failed to deliver some LNG cargoes, following western sanctions on Moscow over its invasion of Ukraine.
The company is, either directly or through its affiliates, "exploring the opportunity" to buy equity from an existing or post-commissioning of a proposed LNG liquefaction plant or project in the U.S., the document dated Feb. 16 said.
It did not say how much the Indian gas distributor had earmarked for any possible deal.
"In addition, GAIL, directly or through any of its affiliates, is interested to source 1 million tonnes per annum LNG from the LNG liquefaction plant or project on a free-on-board basis for a period of 15 years on mutually acceptable terms and conditions," it said.
The document added that the LNG supply contract period may be extended further by 5 or 10 years on a mutual basis, and that supplies are to commence tentatively from the last quarter of 2026.
The last date for interested companies to submit their bids to GAIL is March 10, the document said.
GAIL is looking for long-term gas import deals to make up for its disrupted supplies and is in talks with Abu Dhabi National Oil Co (ADNOC) and other parties to source gas to meet local demand, GAIL's head of finance said in January.
GAIL had signed a 20-year deal with GMTS in 2012 for annual purchases of an average of 2.5 million tonnes of LNG.
GMTS was a unit of Gazprom Germania, now called Sefe, but the parent abandoned the business last April after the western sanctions.
(Reporting by Emily Chow; Editing by Nivedita Bhattacharjee)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
The Battle For Depositors: US Lenders Ramp Up Efforts Amidst Rate Uncertainty
In the competitive landscape of the US banking sector, retaining depositors is paramount for lenders seeking to maintain... Read more
Beyond Capital: Unveiling The Complexities Of Bank Failure Prediction
In the realm of banking, the ability to predict and prevent failures is paramount for financial stability and consumer c... Read more
Central Banks And The Economic Horizon: Steering Through Uncertaintie
In the evolving landscape of global financial markets, the strategic role of central banks has come under intense scruti... Read more
Transforming Financial Operations With Robotic Process Automation
Author: Ricardo Goulart ... Read more
The Role Of Machine Learning In Fraud Detection
Author: Gerardine Lucero  ... Read more
Principles Of Islamic Banking And Finance
When it comes to banking, a significant new contender has entered the ring. The principles of Islamic banking and financ... Read more