Gazprom's LNG supplies to GAIL disrupted
Gas

Gazprom's LNG supplies to GAIL disrupted

If such shortfall/non-delivery persists, it may have a material impact on the company and efforts are already underway to resolve the issue

  • By ICN Bureau | August 05, 2022

There have been supply disruptions under the contract with Gazprom Marketing and Trading Singapore Pte Ltd (GMTS) effect from late May 2022 and till date GMTS has not delivered 8 cargoes to GAIL however, in June 2022 one LNG Cargo was received from GMTS according to GAIL.

GAIL has taken necessary actions to maintain reliable gas supplies to its downstream RLNG customers by reducing its own internal consumption, procurement of additional volumes and imposing a suitable curtailment of supplies.

GAIL has a portfolio of around 14 MTPA of Long-term LNG contracts (directly/indirectly) from various sources including Gazprom Marketing and Trading Singapore Pte Ltd (GMTS), supplies from which commenced in 2018 and are valid till 2040. The volumes from GMTS contract is around 8-9% of total gas sales by GAIL on an annualized basis.

"If such shortfall/non-delivery persists, it may have a material impact on the company and efforts are already underway to resolve the issue," as per information released by GAIL to the stock market.

The current situation is a result of GMTS not delivering the volumes citing situations related to the ongoing geopolitics. The same is being dealt by GAIL through discussions at Government to Government (G2G) and company level.

Other Related stories

Startups

Chemical

Petrochemical

Digitization