State-controlled natural gas firm GAIL (India) is looking to swap six U.S.-origin LNG cargoes with six cargoes for delivery to India in a tender running until August 6, industry sources told Reuters on Tuesday.
GAIL (India) is offering cargoes loading every other month in 2026, beginning in February and ending in December, on a free-on-board (FOB) basis from the U.S. export terminals at Sabine Pass or Cove Point, one of Reuters’ sources said.
In exchange for these cargoes the Indian company is looking for six deliveries to India on a delivered ex-ship (DES) basis for the same months.
GAIL, the biggest natural gas distributor in India, has also reportedly started discussions about buying LNG from the proposed $44-billion Alaska LNG project.
The potential deal to purchase LNG from the project is part of India’s push to buy and pledge to buy increased volumes of U.S. energy products and thus reduce its trade surplus with America and avoid steep tariffs.
The cost of supply from Alaska LNG will be the crucial factor in GAIL’s decision whether to commit to a long-term offtake deal.
Energy companies are ready to commit to buying $115 billion worth of LNG from Alaska once President Trump’s pet energy project gets done, the company in charge of the project, Glenfarne, said last month, noting that as many as 50 companies have expressed formal interest.
U.S. officials toured Asia earlier this year in search of potential Asian investors in the LNG project estimated at $44 billion. The LNG export facility is strongly supported by the Trump Administration, which has also been pressing Japan and South Korea to buy more LNG as a way to reduce America’s trade deficit with its Asian allies.
The Alaska LNG project is designed to deliver North Slope natural gas to Alaskans and export LNG to U.S. allies across the Pacific. An 800-mile pipeline is planned to transport the gas from the production centers in the North Slope to south-central Alaska for exports. In addition, multiple gas interconnection points will ensure meeting in-state gas demand.
By Tsvetana Paraskova for Oilprice.com
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