Tag : LNG

New Delhi: A former Gazprom unit has defaulted on supplying contractual LNG to India, prompting rationing of gas supplies to users like fertiliser plants in the country, state-owned GAIL (India) Ltd said on Thursday. Gazprom Marketing and Trading Singapore (GMTS), now a subsidiary of Gazprom Germania, has defaulted on supply of eight cargoes (shiploads) of liquefied natural gas (LNG) under a long-term deal, GAIL Director (Finance) R K Jain said at an investor call. PTI had first reported on the GMTS default on July 19. With alternative supplies costing at least three times the price of GMTS shipments, GAIL has reduced supply to users by about 10 per cent and is exploring options to advance some of the US supplies. "The situation is an area of concern," he said. Under the long-term deal, GMTS was to supply 2.5 million tonnes or a minimum of 36 cargoes of LNG to GAIL during the calendar year 2022. GAIL received one cargo of LNG in June and nothing after that. "They are stating that because they have to secure supply for Europe, they are not certain about supplying (LNG to us) under this contract," he said. GAIL had in 2012 signed a 20-year deal with Russia's Gazprom to buy 2.85 million tonnes of LNG. Supplies started in 2018 and the full volume was to reach in 2023. GMTS had signed the deal on behalf of Gazprom. GMTS was moved to Gazprom Germania and in early April, Gazprom gave up the ownership of the German unit without giving a reason and placed parts of it under Russian sanctions. As per the deal, GMTS was to supply LNG to GAIL from its portfolio of production. But the Russian sanctions mean it cannot source LNG from Russia. Jain said to make up for the shortfall of 8.5 million standard cubic metres per day of gas from GMTS ...