Understanding GAIL India’s LNG Cargo Swap Tender and Its Impact on Freight Transport

• Posted in OilGas
• on January 20, 2026
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What’s Behind GAIL India’s LNG Swap Tender?

GAIL India, the country’s premier gas distributor, has recently initiated a swap tender involving liquefied natural gas (LNG) cargos. The swap tender process involves offering an LNG cargo loaded in the U.S. and seeking an equivalent cargo delivered to India within specified dates. This move serves as a key part of GAIL’s strategy to fulfill its long-term commitments and optimize freight logistics.

Details of the Swap Tender

The offered LNG cargo is scheduled for loading on March 10, 2026, free-on-board (FOB) at the Cove Point LNG terminal in Maryland, USA. In exchange, GAIL seeks a delivered ex-ship (DES) cargo to reach India’s Dabhol terminal between March 1 and 7, 2026. The swap tender is slated to close on December 11, 2025, allowing industry participants a defined window for negotiation.

The Long-Term LNG Supply Agreement

The tender roots back to an enduring agreement spanning 20 years, under which GAIL is set to lift around 2.3 million metric tons per annum of LNG from the Cove Point terminal. This contractual framework underpins India’s ambitious energy needs and reflects evolving dynamics in global LNG freight markets.

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