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Former Gazprom unit rejects GAIL demand for compensation over non-supply of LNG
A former unit of Russian energy giant Gazprom has rejected state-owned GAIL (India) Ltd’s demand for compensation for non-delivery of LNG supplies in the aftermath of Russia’s invasion of Ukraine
In a stock exchange filing, GAIL said SEFE Marketing Trading Singapore Pte Ltd has stated that it does not owe anything other than the defaulted cargoes.
GAIL in December last year filed an arbitration claim before the London Court of International Arbitration seeking USD 1.8 billion for “non-supply of LNG cargoes under a long-term contract.. This included compensation for non-supply besides making up for the defaulted volumes.
GAIL in 2012 signed a 20-year deal to buy as much as 2.85 million tonnes per annum of liquefied natural gas (LNG) with Russian energy giant Gazprom.
The deal was signed with Gazprom Marketing and Singapore (GMTS), which at the time was a unit of Gazprom Germania, now called Sefe. The Russian parent gave up ownership of Sefe after Western sanctions were imposed on Moscow over its invasion of Ukraine in 2022.
Sefe had stopped supplying LNG to the Indian company in June 2022 to meet its own demand. The German government acquired Sefe after the start of the Ukraine war in February 2022 and prohibited it from taking volumes from Russia. Supplies were resumed in March last year.
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