Jul 17, 2025 (MarketLine via COMTEX) --
The initial talks with Glenfarne are part of India's broader strategy to augment energy imports from the US.
India's state-run GAIL is in preliminary discussions to procure liquefied natural gas (LNG) from the Alaska LNG project as the nation seeks to enhance its import capabilities, reported Reuters, citing sources.
The initial talks with project developer Glenfarne are part of India's broader strategy to augment energy imports from the US, potentially reducing its trade surplus and avoiding hefty US tariffs.
The landed cost of LNG is a critical factor in the decision-making process.
The Alaska LNG project, backed by US President Donald Trump, has been in the planning stages for more than a decade.
Valued at $44bn, the project has the potential to export up to 20 million tonnes per annum (mtpa) of LNG. Alaska Governor Mike Dunleavy has indicated that LNG exports could commence by 2030.
Glenfarne is expected to make a final investment decision (FID) later this year on the project's first phase, which includes a 765-mile (1,231.1km) pipeline to transport gas from Alaska's north to the Anchorage area.
Last month, Glenfarne revealed that 50 companies have shown formal interest in Alaska LNG contracts.
Glenfarne chose not to confirm individual negotiations but highlighted the project's economic and geostrategic benefits, the report said.
Meanwhile, other international players including Japan's JERA are monitoring the project's financial and operational details.
India, currently the world's fourth-largest LNG importer, aims to raise gas's share in its energy mix from around 6% to 15% by 2030 as part of the country's commitment to reducing its carbon footprint.
To support this goal, GAIL plans to expand the capacity of its Dabhol LNG terminal from 5mtpa to 6.3mtpa by mid-2027, and to 12.5mtpa by 2031aEUR"32.
Earlier in the year, GAIL sought initial bids to purchase equity in an LNG project, with the ambition of commissioning by 2030.
GAIL currently holds contracts to buy 15.5mtpa of LNG, with 5.8 million tonnes sourced from the US.
In a recent tender, GAIL India expressed interest in acquiring up to a 26% stake in a US LNG project, along with a 15-year gas import agreement, in line with New Delhi's strategy to balance trade with Washington.
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