India's GAIL in initial talks for long-term LNG deal with Alaska LNG, sources say
The talks with developer Glenfarne come as India works to raise its energy imports from the United States to narrow its trade surplus as part of a broader trade agreement with Washington to avoid the imposition of hefty U.S. tariffs.
GAIL's discussions are preliminary as the landed cost of LNG will be a crucial deciding factor for the deal, the sources said.
Glenfarne said last month that 50 firms had formally expressed interest in contracts with Alaska LNG. The project, championed by U.S. President Donald Trump, has been stuck on the drawing board for more than a decade.
GAIL did not respond to Reuters email seeking comment on the talks.
'Glenfarne does not comment on or confirm individual commercial negotiations, but Alaska LNG's growing commercial momentum reflects the project's competitive economic and geostrategic advantages,' it said in an emailed statement to Reuters.
India's GAIL sells LNG cargo as early monsoons cause weak power demand, say sources
India, the world's fourth-largest LNG importer, aims to increase the share of gas in its energy mix to 15% by 2030, up from about 6% currently, to reduce its carbon footprint.
GAIL plans to increase the capacity of its 5 million metric tons per year Dabhol LNG terminal to 6.3 million tons per year by mid-2027 and to 12.5 million tons per year by 2031-32.
Earlier this year GAIL invited initial bids from companies as it seeks to buy equity in an existing LNG project or a new project that would be commissioned by 2030 at the latest.
The $44-billion Alaska LNG project could export up to 20 million metric tons per year of the superchilled gas. Alaska Governor Mike Dunleavy said in March the project could start exporting LNG by 2030.
Glenfarne expects to make a final investment decision in the fourth quarter of this year on the first phase of the project - a 765-mile (1231-km) pipeline to deliver gas from the state's far north to its Anchorage region.
Thailand's state-owned oil and gas giant PTT last month signed a 20-year agreement to buy 2 million tons per year of LNG from the Alaska LNG project.
Others, including South Korea and Japan's top power producer JERA, are awaiting clarity on the financing and cost of the project.
GAIL has contracts to buy 15.5 million tons annually of LNG including 5.8 million tons from the United States.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
2 hours ago
- Express Tribune
Pakistani officials deny reports of Trump's visit
US President Donald Trump arrives at a dinner for NATO heads of state and governments hosted by Dutch King Willem-Alexander and Dutch Queen Maxima, on the sidelines of a NATO Summit, at Huis ten Bosch Palace in The Hague, Netherlands June 24, 2025. Photo: REUTERS Listen to article Pakistani diplomatic sources on Thursday denied media reports that the US President Donald Trump was expected to visit the South Asian nation on Sept. 18. Sources in the Foreign Ministry said the news circulating about Trump's trip was "fake" as the US president is visiting the UK between Sept. 17 and 19. "We have no information about any such visit. If there is any such thing, the Foreign Ministry will officially announce that," a senior ministry official told Anadolu on the condition of anonymity. Earlier, Reuters reported, quoting local news channels, that US President Donald Trump is expected to visit Pakistan in September, two local television news channels reported on Thursday, citing sources familiar with the matter. The two TV news channels said that Trump would also visit India after arriving in Islamabad in September. Pakistan's foreign office spokesperson said he was not aware of Trump's expected visit. A US embassy spokesperson in Islamabad told Reuters, "We have nothing to announce," and said that the White House might be able to provide confirmation on the president's schedule. Pakistan's information ministry didn't respond to a Reuters request for a comment. If confirmed, the visit would be the first by a US president since nearly two decades ago, when President George W. Bush visited Pakistan in 2006. According to Anadolu, local News channel, citing unnamed ministry officials, reported that Trump was expected to visit Pakistan on Sept. 18. An international news agency and several media outlets reported the news, quoting the broadcaster. However, the news channel later withdrew the report and apologized for running an "unconfirmed" story. According to an earlier schedule, the US president is scheduled to pay a state visit to the UK between Sept. 17 and 19. Relations between the Pakistani government and the Trump administration have strengthened in recent months, following the latter's active intervention to broker a ceasefire between longtime rivals India and Pakistan after a four-day conflict in May. Last month, Trump also hosted Pakistan's army chief Gen. Asim Munir at the White House, in an unprecedented diplomatic development.
Business Recorder
4 hours ago
- Business Recorder
Oil prices gain on geopolitical risks, inventory worries
LONDON: Oil prices rose on Thursday, even as global trade tensions appeared to cool, with analysts pointing to low inventories and renewed Middle East risks as factors supporting the market. Brent crude futures were up 31 cents, or around 0.5%, to $68.83 a barrel at 1203 GMT. US West Texas Intermediate crude futures were up 61 cents, or 0.9%, at $66.99. US President Donald Trump has said letters notifying smaller countries of their US tariff rates would go out soon, and has also alluded to prospects of a deal with Beijing on illicit drugs and a possible agreement with the European Union. 'Near-term prices (are) set to remain volatile due to the uncertainty over the final scale of US tariffs and the resultant impact on global growth,' said Ashley Kelty, an analyst at Panmure Liberum, adding that prices would likely settle lower in the medium term. Oil eases 1% as US fuel stock builds put focus on demand The oil market on Thursday was also reacting to a tightened inventory scenario, said John Evans, analyst at PVM Oil Associates. Last week, the International Energy Agency said that oil output increases were not leading to higher inventories, which showed markets were thirsty for more oil. 'Oil thinking has been distracted from the Middle East, and the reminders of Israel's attacks into Syria and the drone attacks on oil infrastructure in Kurdistan are timely and once again add a little fizz to proceedings,' Evans said. Drone attacks on oilfields in Iraq's semi-autonomous Kurdistan region have slashed crude output by up to 150,000 barrels per day, two energy officials said on Wednesday, as infrastructure damage forced multiple shutdowns. 'For now, oil market indicators continue to suggest the physical market remains tight. But ongoing trade tensions could weigh on oil demand growth prospects and pose downside risks to prices,' said UBS commodities analyst Giovanni Staunovo.
Business Recorder
7 hours ago
- Business Recorder
Pakistan has largest gender employment gap in South Asia, significant pay disparity: ILO
A new report by the International Labour Organisation (ILO) highlights significant gender inequalities in Pakistan's labour market, revealing the largest gap between men's and women's employment rates in South Asia and a substantial gender pay gap. The 'Pakistan Gender Pay Gap Report 2025', based on data from national Labour Force Surveys, indicates that Pakistan's male employment rate stands at 79.2 percent, while the female employment rate was 23.2 percent in 2021. This employment gap has not significantly decreased over the past decade. The report further notes that the relatively few women who are employed are less likely than men to work as wage employees, the category used for estimating the gender pay gap. Instead, women are more likely to work as contributing family workers within the self-employed category. As a result, women constitute only 13.5 percent of employees in Pakistan. The data also shows that women in wage employment are more likely to have higher levels of education than their male counterparts. Additionally, female employees are more frequently found in the public sector, formal employment, and jobs with permanent contracts, as well as in professional occupations and larger firms. Pakistani women in wage employment are also more likely to work part-time, potentially to balance work with disproportionate household care responsibilities. Despite these characteristics, the report reveals that women in wage employment earn substantially lower wages than men. After accounting for differences in the distribution of male and female wage employment, women earn, on average, between 25 and 30 percent less than men. When considering monthly wages, the gap is 30 percent due to women working fewer paid hours on average. PSX's commitment to gender equality From an international perspective, Pakistan's gender pay gap is considered high, around10 percentage points higher than the global average and 10 percentage points higher than the average for lower-middle-income countries, Pakistan's income group. It is also higher than values recorded in other South Asian countries like Sri Lanka and Nepal with available information. The report indicates that the gender pay gap in Pakistan is generally larger among older workers, individuals with low educational attainment, informal workers, and those in the private sector. Conversely, it is smaller among highly educated and younger individuals. The gap is also more noticeable in agriculture and manufacturing compared to the service sector. Regarding the causes, the report suggests that the gender pay gap is either small or non-existent in the public sector and formal economy. This points to a potential link with a lack of compliance with labour legislation, which is more prevalent in the private sector and informal economy. The increase in the gender pay gap with age may be attributed to women opting for more flexible, lower-wage work arrangements, such as part-time employment, after childbirth. For women with low education levels, the gender pay gap exceeds 40 percent, while it is less pronounced for those with higher education, suggesting that education may partially mitigate some obstacles to quality jobs. CM launches Gender Parity Report 2024 of KP govt A decomposition analysis in the report confirms that the gender pay gap, particularly among low-income workers, remains largely unexplained by observable factors. This implies that women earn significantly less than men even with comparable observable characteristics that should yield similar wages. Potential reasons include occupational segregation, where women are more likely to be employed in lower-paying jobs or sectors, a lack of transparency in company pay structures, and discriminatory pay practices.
