According to Reports, the Chairman of the business said at the annual shareholder meeting on Friday that India is in talks with Russia to resume gas supplies in accordance with the long-term import agreement between Gazprom and GAIL (India) Ltd.
Since May, GAIL, India’s largest gas distributor and pipeline operator, has been unable to receive the prearranged imports and has been required to curtail client deliveries. Manoj Jain, chairman of GAIL, said that the crisis in Russia and Ukraine had affected supplies under the Gazprom deal and that “there are some significant challenges which we are trying to address both at the business level as well as at the government to government level”.
Amount Covered under the Deal :
The amounts covered under the arrangement, which also included supplies from the United States, Qatar, and Australia, made up about a fifth of GAIL’s 14 million tonnes of annual offshore gas supply, as per Mr. Jain.
“Therefore, it generally has little effect on us. 10% and 15% are the only two percentages that change, he went on to say that by including domestic gas, the effect on the local supply is reduced to about 7-8%”. As said by him, GAIL is seeking further long-term gas import contracts so that it will be prepared for “such unforeseen eventualities”.
A 20-year agreement for the average yearly purchase of 2.5 million tonnes of LNG was made between GAIL and Russia’s Gazprom in 2012. The supply duties under the contract started in 2018. On behalf of the business, Gazprom Marketing and Singapore (GMTS) approved the contract.
image credit : wikimedia commons
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