Indian gas distributor GAIL (India) is considering acquiring up to a 26% stake in a liquefied natural gas (LNG) liquefaction plant or project in the US, reported Reuters, citing a document issued by the company.
The move comes in the wake of supply disruptions faced by GAIL in 2022 following the failure of delivery of LNG cargoes by Russia-owned Gazprom Marketing and Trading (GMTS) due to Western sanctions on Moscow over its invasion of Ukraine.
Either directly or through its affiliates, GAIL is ‘exploring the opportunity’ to acquire a stake in an existing or proposed LNG liquefaction plant or project in the US, according to the document.
“In addition, GAIL, directly or through any of its affiliates, is interested to source one million tonnes per annum of 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,” the document read.
According to the document, the LNG supply contract period can be extended further by five or ten years while the supplies are expected to commence from the last quarter of 2026.
The Indian firm has set 10 March 2023 as the last day for submission of potential bids for the LNG supply.
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To make up for its disrupted gas supplies, GAIL is considering signing long-term gas import deals.
GAIL’s finance head was cited by the news agency as saying in January 2023 that the firm was in talks to source gas from Abu Dhabi National Oil (ADNOC) and other firms to meet local demands.
In a separate announcement in India, India’s state-run Oil and Natural Gas Corporation (ONGC) is planning to commence drilling work in the Cauvery ultra deep waters situated along India’s east coast in the next financial year, beginning in April 2023, reported The Hindu Business Line.
ONGC exploration director Sushma Rawat to the news agency: “We also have a lot of foreign MNCs who are interested and they are studying data. They are looking into various financial and administrative regulatory policies and seeing whether it is conducive.”
Covering an area of more than 1.5 lakh km², the Cauvery basin comprises 25,000km² on-land, a 30,000km² shallow offshore area, and 95,000km² of deep water offshore areas.