A former unit of Russia’s Gazprom is resuming liquefied natural gas (LNG) supply to GAIL after suspending it last year, Rameswar Teli, minister of state, petroleum & natural gas, has said. SEFE Marketing and Trading Singapore (SMTS), formerly Gazprom Marketing and Trading Singapore (GMTS), has “informed that they shall be able to supply two cargoes in March 2023 and two in April 2023,” Teli told parliament.
SEFE cited force majeure and suspended supplies to GAIL last May after the outbreak of war in Ukraine. The war deepened the global energy crisis, sending gas prices to record high levels, with LNG cargoes going to the highest bidders. Global LNG prices are now near normal.
“In its annual delivery plan and in their latest communications, (SMTS) have maintained their alleged force majeure stance citing various reasons such as Russian sanctions on its LNG source/portfolio and mandate from German authorities (BnetzA) for ensuring energy security for Europe for their inability to deliver LNG cargoes,” Teli said. SMTS still maintains its force majeure stance but has offered to supply four cargoes to GAIL, he said.
GAIL has a 20-year deal with GMTS for purchase of 2.5 million tonnes of LNG annually or about 36 cargoes. “In view of limitation in supply of LNG carried out by GMTS, GAIL had imposed certain supply regulations on regasified liquefied natural gas to downstream customers from mid-July 2022 to mid-March 2023,” Teli said.
