India has accelerated its push for deeper trade and energy ties with the United States. State-run energy giant GAIL (India) Ltd has issued a tender to acquire up to a 26% equity stake in a U.S.-based liquefied natural gas (LNG) project. The deal would also include a 15-year import agreement, positioning India as a serious contender to become one of the first nations to secure a substantial post-election trade agreement with Washington.
The tender, published on GAIL’s website, marks a revived effort by India’s largest gas distributor to solidify long-term access to U.S. energy resources — a key pillar in New Delhi’s bid to reduce its $45.7 billion trade surplus with America and secure energy supply in a volatile global market.
This comes at a time when geopolitical tensions are reshaping energy alliances. Former U.S. President Donald Trump, who has announced sweeping tariffs on multiple trading partners, including China, has signalled an aggressive pivot to using U.S. natural gas exports as a foreign policy lever.
India’s swift engagement in LNG talks is widely interpreted as a proactive attempt to safeguard its economic interests ahead of potential disruptions and sweeten the pitch for a broader trade deal.
Under the new tender, GAIL is seeking bids for equity participation in either an existing or soon-to-be-commissioned U.S. LNG liquefaction plant, with a supply commitment of one million metric tonnes per year (MMTPA) of LNG starting between 2029 and 2030. The company has also indicated flexibility to extend the deal for up to a decade beyond the initial term. Submissions for the tender close on April 28.
This is GAIL’s second attempt at such a deal. A similar move in 2023 was shelved after the Biden administration imposed a moratorium on new and pending LNG export approvals amid domestic climate policy considerations. That restriction has since been lifted under Trump’s policy direction, prompting GAIL to resume its plans swiftly.
The United States is already India’s second-largest LNG supplier, trailing only Qatar. India — the fourth-largest LNG importer globally — has made it clear it wants to increase natural gas’s share in its national energy mix from the current 6.2% to 15% by 2030. Securing affordable long-term LNG from a stable partner like the U.S. is crucial to achieving that target.
To further sweeten the economic viability of American gas, India is reportedly considering scrapping the import duty on U.S. LNG — a move that would both boost competitiveness and signal goodwill ahead of trade negotiations. Such a step could be particularly significant as India seeks to remain a key partner in Washington’s Indo-Pacific economic and strategic frameworks.
According to GAIL’s latest annual report, the company is already committed to importing 15.5 million tonnes of LNG annually under long-term contracts with global players including QatarEnergy, Australia’s Gorgon project, and U.S.-based firms like Berkshire Hathaway Energy (Cove Point) and Cheniere Energy (Sabine Pass). The proposed new deal would further strengthen GAIL’s portfolio and enhance India’s energy security.
As Washington repositions its trade and energy strategies, India’s timely re-entry into the U.S. LNG market could give it an early-mover advantage. For New Delhi, this is more than an energy acquisition — it’s a calculated move in the broader chess game of global trade realignment.
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