GAIL (India) Ltd, the country’s largest natural gas transmission and marketing firm, has announced plans to expand its Dabhol liquefied natural gas (LNG) terminal to a capacity of 12.5 million tonnes per annum (mtpa) by 2031–32, with a near-term goal of reaching 6.3 mtpa by mid-2027. The move is part of a broader strategy to boost LNG imports, particularly from the United States, in response to growing domestic demand.

GAIL has received five proposals for equity stakes in U.S. LNG projects, each linked with long-term supply agreements. This represents a revival of a plan first introduced in FY23, which was paused after the U.S. government temporarily halted approvals for new LNG export projects in 2024.

“The U.S. remains a key partner in our energy portfolio,” said GAIL’s Director (Business Development), adding that the current Henry Hub spot price of USD 3.4 per MMBtu makes American LNG an attractive and flexible option for Indian buyers.

GAIL currently has 5.8 trillion tonnes of U.S. LNG in its portfolio, and the company believes there is ample room for expanding offtakes, especially with supply contracts structured on a freight-on-board basis, allowing for swaps and re-routing based on market conditions.

Strong Capex Push to Drive Growth

In FY25, GAIL reported a capital expenditure of ₹10,512 crore, and a similar outlay is planned for FY26. Key allocations include:

• ₹3,000–4,000 crore for petrochemicals

• ₹3,000 crore for pipeline infrastructure

• Additional investments in compressed biogas (CBG) and LNG initiatives

This investment is expected to support GAIL’s ongoing expansion across multiple business verticals.

Operationally, GAIL’s natural gas transmission volume rose by 6% in FY25, reaching 127.32 MMSCMD, up from 120.46 MMSCMD in FY24. Gas marketing volumes also increased to 101.49 MMSCMD, reflecting the company’s strengthening position in the Indian gas market.

The expansion of the Dabhol terminal, paired with increasing LNG imports from the U.S., positions GAIL to play a central role in meeting India’s rising energy needs. With a diversified investment strategy covering pipelines, petrochemicals, and biogas, GAIL is working to enhance energy security and reduce carbon intensity in line with national energy goals.

As the global LNG market evolves and domestic consumption rises, GAIL’s strategic positioning and infrastructure investments are expected to provide a competitive edge in the region’s energy transition.

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