India-US Energy Collaboration Takes a Leap

State-owned gas utility GAIL Ltd has initiated preliminary discussions to import liquefied natural gas (LNG) from the Alaska LNG project, a move that could significantly bolster India's energy imports from the United States.

Strategic Move to Balance Trade

This initiative is part of India's broader strategy to reduce its trade surplus with Washington and negotiate a trade deal that could avert potential US tariffs. The viability of the deal, however, depends on the cost of gas from Alaska, a critical factor for GAIL.

Alaska LNG Project Gains Momentum

The $44-billion Alaska LNG project, once championed by former US President Donald Trump, has seen renewed interest with Thailand's PTT signing a 20-year deal. Around 50 companies have expressed interest in the project, which aims to export up to 20 million tonnes of LNG annually.

India's Ambitious Energy Goals

As the world's fourth-largest LNG importer, India is aiming to increase natural gas's share in its energy mix to 15% by 2030. GAIL plans to expand its domestic import capacity, including upgrading the Dabhol terminal's capacity significantly by 2031-32.