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GAIL India is reviving its plan to acquire a stake in a US liquefied natural gas (LNG) plant or secure a long-term supply agreement, reported Reuters, citing GAIL chairman Sandeep Kumar Gupta.
This move comes after the US administration under president Donald Trump ended a ban on export permits for new projects.
Gupta told Reuters ahead of India Energy Week: "Their (Washington's) decision to lift the ban will improve LNG supply and we will revive our plans to either buy a stake or buy US LNG under long-term deals."
He also added that the company would initiate a tendering process for long-term LNG purchases to make a decision.
India, currently the world's fourth-largest LNG importer, has set a goal to increase the share of gas in its energy mix to 15% by 2030, up from 6.2%.
This plan was previously halted in 2023 when then-president Joe Biden paused approvals for pending and future applications to export LNG from new projects.
However, with the policy reversal, GAIL is now actively looking to expand its portfolio.
Gupta believes that global LNG prices could decline after 2026 as new projects in the US and other regions begin to contribute to the supply.
The statement comes at a time when Asia spot LNG prices have reached a two-month high, closely following a surge in European gas prices.
Analysts predict that increased supply from the US and Qatar will help to stabilise prices later in the decade.
The US is set to nearly double LNG export capacity by 2030, while Qatar aims to increase liquefaction capacity from 77 to 142 million tonnes per year by 2027.
In India, gas consumption is expected to surge, with Indian Oil Minister Hardeep Singh Puri forecasting a rise to more than 500 million standard cubic metres per day (mscm/d) by 2030.
The country's consumption has already increased by approximately 12.5% to around 185 mscm/d in the fiscal year 2024, as reported by the Oil Ministry's Petroleum Planning and Analysis Cell.
Gupta also mentioned that India's gas consumption could rise sharply if the government includes gas in the goods and services tax regime.
This change would replace the current multiple taxes on gas, potentially making prices cheaper and uniform across India.
GAIL is already contracted to buy 15.5 million tonnes per annum (mtpa) of LNG, which includes supplies from the US, Qatar, Australia, and traders like Vitol and Adnoc.
Its long-term agreements with US companies involve the purchase of 5.8mtpa of LNG, shared between Berkshire Hathaway Energy's Cove Point plant and Cheniere Energy's Sabine Pass site in Louisiana.