India’s largest gas distributor GAIL (India) Ltd has started gas rationing, cutting supplies to fertiliser and industrial clients after imports were hit under its deal with a former unit of Russian energy giant Gazprom, two sources familiar with the matter said.<\/p>\n
Lower gas supplies will affect impact India’s urea production, and a sustained cut would lift imports of the soil nutrient, a fertiliser industry source aware of the cuts said.<\/p>\n
Neither GAIL nor India’s fertiliser ministry responded to Reuters’ requests for comments.<\/p>\n
Gazprom Marketing and Trading Singapore (GMTS), now a subsidiary of Gazprom Germania, has failed to deliver some liquefied natural gas (LNG) cargoes to GAIL and has said it may not be able to meet supplies under their long-term deal.<\/p>\n
GAIL, which imports and distributes gas and also operates India’s largest gas pipeline network, has cut supplies to some fertiliser plants by 10% and restricted gas sales to industrial clients to the lower tolerance limit of 10%-20%, the sources said.<\/p>\n
The state-run company is operating its petrochemical complex at Pata in northern India at about 60% capacity to save gas for other clients, they said. GAIL has advanced maintenance shutdown of some units at the 810,000 tonne-a-year plant, one of the sources added.<\/p>\n
An industrial consumer said GAIL has restricted its gas quantities to a ‘take or pay level’, the lowest level at which it will not attract a penalty from the customer.<\/p>\n
GAIL’s measures will cut gas supplies to clients by about 6.5 million cubic meters a day, while imports under the Gazprom deal were averaging about 8.5 mcmd, a separate source said.<\/p>\n
“We don’t know where else we can cut supplies… Indian customers cannot afford costly spot gas,” the second source said.<\/p>\n
This source said that GAIL has written repeatedly to Gazprom Germania about supplies under the deal.<\/p>\n
Last month, GAIL bought a spot LNG cargo at $38 per million British thermal units (mmBtu) for August loading, well above the level at which it was getting gas under its deal with Gazprom, at about $12-$14 per mmBtu.<\/p>\n
GAIL agreed a 20-year deal with Russia’s Gazprom in 2012 for annual purchases of an average 2.5 million tonnes of LNG. Supplies under the contract began in 2018.<\/p>\n
GMTS had signed the deal on behalf of Gazprom. At the time, Gazprom Germania was a unit of the Russian state firm.<\/p>\n
However, following Western sanctions against Russia over its invasion of Ukraine, Gazprom gave up ownership of Gazprom Germania in early April without explanation and placed parts of it under Russian sanctions.<\/p>\n","protected":false},"excerpt":{"rendered":"
India’s largest gas distributor GAIL (India) Ltd has started gas rationing, cutting supplies to fertiliser and industrial clients after imports were hit under its deal with a former unit of Russian energy giant Gazprom, two sources familiar with the matter said. Lower gas supplies will affect impact India’s urea production, and a sustained cut would lift imports of the soil nutrient, a fertiliser industry source aware of the cuts said. Neither GAIL nor India’s fertiliser ministry responded to Reuters’ requests for comments. Gazprom Marketing and Trading Singapore (GMTS), now a subsidiary of Gazprom Germania, has failed to deliver some liquefied […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[133],"tags":[],"class_list":["post-511236","post","type-post","status-publish","format-standard","hentry","category-oil-gas"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/511236","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=511236"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/511236\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=511236"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=511236"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=511236"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}