LNG import
The government company Gail has started initial conversations to purchase liquorized natural gas (LNG) from the US Trump -backed Alaska LNG project. Those who know about this matter said that South Asian country India is increasing its import capacity.
Gayle’s conversation is going on with Alaska LNG project developer Glenforn. India’s effort is to reduce trade deficit by increasing energy imports from America and can avoid heavy American tariffs. For this, work is being done on comprehensive trade agreement with the US.
Trump supports the project
According to the information, this conversation is still in the early stages and the cost of LNG for the agreement will be the biggest decision -making aspect. Glenforn said last month that 50 companies have shown interest in the agreement with Alaska LNG. US President Donald Trump has supported this project, but the project has been stuck only on paper for the last 10 years.
Gayle did not comment on this to Reuters. At the same time, Glennforn told Reuters in email that the company does not comment on individual commercial talks, but the commercial interest that Alaska LNG is getting shows its economic and strategic benefits.
LNG’s fourth importer
India is the fourth largest LNG importer in the world and by 2030 plans to increase the gas stake in its energy consumption from about 6% to 15% to reduce carbon emissions. Gayle is planning to increase its Dabhol LNG terminal capacity, which is currently Rs.50 million metric tonnes annually by mid-2027 and 1.25 million tonnes annually by 2027 and 1.25 million tonnes per annum.
Earlier this year, Gayle also called for early dialects from companies to buy a stake in an existing or new LNG project starting by 2030. The Alaska LNG project costing about $ 44 billion can export 2 crore metric tons of super-clock gas every year. Alaska Governor Mike Dunlivi said in March that this project could start exporting LNG by 2030.
58 million tonnes of LNG comes from US
Glenforn hopes that by the fourth quarter of this year, it will take a final investment decision on the 765 miles (1231 km) long pipeline from the north of Alaska to the Encourage region of the project. Thailand’s government oil and gas company PTT has signed an agreement to buy 2 million tonnes every year from Alaska LNG project last month for the next 20 years.
Several other companies, including South Korea and Japan’s largest power company JRA, are also waiting for the situation to be clear on the funding and cost of the project. Gayle has agreements to buy 1.55 million tonnes of LNG every year, out of which 58 lakh tonnes come from America.