Mahua Moitra slams GAIL as company looks to buy 26% stake in US LNG project
2 min read . Updated: 20 Feb 2023, 10:56 PM IST
PremiumIndia's biggest gas firm is looking to buy up to 26% stake in a LNG project in the United States in an attempt to shore up supply sources to meet rising demand.
Trinamool Congress MP Mahua Moitra fired a fresh salvo at gas distributor GAIL (India) Ltd on Monday as the company announced plans to explore an equity stake of up to 26% in an US LNG project. The remarks come mere days after the lawmaker lashed out at TotalEnergies, alleging that it obtained 'a contract without a tender'.
“Thank god my kartavya path is helping bring transparency in public sector procurement. Direct negotiations without following due process was a sham," the TMC leader tweeted, sharing screengrabs of the company's ‘expression of interest’ for acquiring the liquefaction plant.
She also shared excerpts from a speculative analysis of why this was 'not a straight forward deal'.
The highlighted text shared by Moitra - which appears to have since been removed from the website in question - suggests that the company was reponding to 'signals from New Delhi' to form a deal with Tellurian. Noting the Opposition furore over the handing over of Dhamra LNG terminal from IOC to the Adanis, the article suggested that GAIL had now opted for an EOI.
In 2019 the TMC MP has alleged that state-owned Indian Oil Corporation and GAIL "signed ₹46,500 crore use or pay contract for LNG terminal at Dhamra with Adani without tender process". Amid the Adani-Hindenburg row she had shared screenshots of her earlier tweet as a reminder.
According to a document issued by GAIL it is "exploring the opportunity" to buy equity from an existing or post-commissioning of a proposed LNG liquefaction plant or project in the US - either directly or through its affiliates.
The document did not mention how much the Indian gas distributor had earmarked for any possible deal.
"In addition, GAIL, directly or through any of its affiliates, is interested to source 1 million tonnes per annum LNG from the LNG liquefaction plant or project on a free-on-board basis for a period of 15 years on mutually acceptable terms and conditions," it said.
(With inputs from agencies)