In a promising step toward strengthening energy ties and narrowing trade imbalances, India’s leading gas distribution company has issued a tender to acquire up to a 26% equity stake in a liquefied natural gas (LNG) project based in the United States. The proposal includes a 15-year import agreement, reflecting India’s proactive approach to securing cleaner energy while enhancing international trade partnerships.
The Indian firm aims to source one million metric tons of LNG annually from either an existing or upcoming U.S. liquefaction facility, with deliveries expected to begin between 2029 and 2030. The deal includes an option for a five- to ten-year extension, ensuring long-term cooperation and energy supply security.
This move not only supports India’s plan to raise the share of natural gas in its energy mix to 15% by 2030 but also reinforces trade connectivity with one of its largest suppliers. The United States is currently India’s second-largest LNG provider, with Qatar holding the top position.
To make these imports even more viable, India is also considering removing the import tax on U.S.-sourced LNG—an initiative that could make pricing more competitive and help reduce India’s trade surplus with Washington.
The tender follows the lifting of previous export restrictions in the U.S., providing a fresh window for global collaboration. The Indian firm had paused a similar process in 2023 due to regulatory limitations, but the new U.S. policy has revived these strategic ambitions.
India currently contracts approximately 15.5 million tons of LNG annually from a mix of global suppliers, including Australia, Qatar, the United States, and several international trading firms. This potential investment and import arrangement with a U.S. project marks a significant milestone in India’s ongoing commitment to cleaner, reliable energy and mutually beneficial trade.
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