West Asia Conflict: GAIL doubles down on expanding LNG supply chain with the US
State-run GAIL (India) is moving ahead on the strategy to create a robust liquefied natural gas (LNG) supply chain from the United states — the world's largest LNG exporter.
On Wednesday, the country's largest gas utility said that an LNG tanker — Energy Fidelity — has been flagged-off from the Sabine Pass LNG Terminal in the United States. This follows the Maharatna company signing a long-term charter party agreement earlier this month with Greek shipping firm Alpha Gas for the vessel.
The development is part of India's strategy to establish a LNG supply chain, which was emphasised by Prime Minister Narendra Modi at the India Energy Week 2026 in January 2026. He stressed on developing strategies across the LNG value chain in view of India's rising natural gas demand.
At the IEW 2026, GAIL also signed a term sheet for equity participation in a ship-owning company established in Singapore with Kawasaki Kisen Kaisha (K LINE) and J M Baxi Marine Services. Besides, it entered into a long-term charter agreement with Mitsui O.S.K. Lines for an LNG carrier — GAIL BHUWAN.
These developments also highlight India's efforts to develop a strategy to compensate for lost LNG cargoes from West Asia. The conflict, which has led to attacks on oil and gas infrastructure in the region including on LNG facilities in Qatar that supplies around 47 per cent of India's natural gas requirement. This has already forced New Delhi to scout for the commodity from the US to Australia.
The world's fourth largest LNG importer has already diversified its procurement sources from 15 to 30 and is focusing on increasing domestic gas production.
Establishing supply chains with Washington helps India in arranging for lost LNG volumes from Qatar, while also enhancing its energy purchases from the US to make up for trade imbalances.
Besides, the US is already the world's largest LNG exporter and is expected to continue to hold the top spot in 2026 and 2027 considering the redevelopment of damaged gas infrastructure in Qatar will take around 3-5 years to build.
Energy Fidelity
"On April 20, 2026, the Consulate General of India, Houston, Manjunath Chenneerappa, flagged off the LNG vessel Energy Fidelity from the Sabine Pass LNG Terminal, demonstrating a commitment to securing reliable and sustainable fuel sources," GAIL said on LinkedIn.
Within GAIL's long-term LNG shipping portfolio, the advanced LNG carrier stands as a testament to India's growing strength in building a robust, future-ready energy ecosystem. It strengthens India's energy logistics, ensuring a resilient supply chain and a reliable flow of cleaner fuel to support the country's growth, it added.
With a cargo capacity of 174,000 cubic meters, Energy Fidelity is equipped with a state-of-the-art two-stroke propulsion system, complemented by advanced air lubrication technology and shaft generators, collectively enhancing fuel efficiency and significantly reducing emissions.
"This milestone reflects the deepening energy partnership between India and the United States, anchored in mutual trust, shared goals of energy security, and expanding economic collaboration. As India continues to transition towards a cleaner energy future, such strategic initiatives play a vital role in energizing progress and driving sustainable growth," GAIL noted.
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Published on April 22, 2026
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