GAIL eyes long-term LNG deal from 2027 linked to Brent crude prices

State-run GAIL (India) Ltd is seeking liquefied natural gas (LNG) for delivery from 2027 under a five-to-10-year deal linked to Brent crude oil prices, four sources aware of the inquiry said.

The Indian company is looking to buy six cargoes of the super chilled gas in 2027, and eight cargoes in the second year of the deal, they said. From the third year onward, GAIL is seeking to buy one cargo every month, they said.

The deadline for submitting offers closes on July 24, added two of the sources. 

India's largest gas distributor GAIL is seeking a long-term deal as it has started operating its Dabhol LNG terminal throughout the year after the installation of a breakwater. The facility can handle 5 million metric tons per year (tpy) of LNG.

GAIL plans to increase the capacity of Dabhol to 6.3 million tpy by mid-2027 and to 12.5 million tpy by 2031-32.

A spokesman for GAIL said there was no comment on the inquiry available.