NEW DELHI: Moscow’s tit-for-tat against Germany’s takeover of Russian gas major Gazprom’s investment and holding subsidiary Gazprom Germania has hit LNG (liquefied natural gas) shipments to state-run GAIL, sending the Indian utility scurrying for alternative supplies.
Sources said GM&T Singapore, a subsidiary of Gazprom’s trading arm Gazprom Marketing & Trading Ltd (GM&T) that was brought under Gazprom Germania’s fold, has not delivered five cargos under a 20-year deal signed in October 2012 for 2.5 million tonne a year of LNG.
This has put GAIL in a spot amid rising gas demand as imports meets 50% of India’s consumption. Sources said given the uncertainty over future supplies, GAIL is scouting for medium-term contracts to avoid buying costlier shipments from spot market to bridge the shortfall.
GAIL’s contract has suffered collateral damage in the war of attrition between Moscow and Europe because of intertwined business among a maze of subsidiaries floated by Gazprom for gas trading.
