GAIL moves to court against former Gazprom unit for default in LNG supplies

4 Dec 2023 , 02:09 PM

State-owned GAIL India said on Friday that it filed a lawsuit against a former unit of Russian energy giant Gazprom for non-delivery of LNG, seeking USD 1.817 billion in damages.

The gas utility stated in a stock exchange filing that it has launched an arbitration suit with the London Court of International Arbitration for ”non-supply of LNG cargoes under long-term contract.”

GAIL struck a 20-year agreement with Russian energy giant Gazprom in 2012 to purchase up to 2.85 million tonnes of liquefied natural gas (LNG) per year. The agreement was entered between Gazprom Marketing and Singapore (GMTS), which was a unit of Gazprom Germania at the time and is now known as Sefe. After Western sanctions were placed on Moscow for its invasion of Ukraine last year, the Russian parent gave up control of Sefe.

To fulfil its own needs, Sefe halted exporting LNG to the Indian firm in June of last year.

GAIL stated in the statement that it has sued ”SEFE Marketing & Trading Singapore Pte Ltd (formerly Gazprom Marketing and Trading Singapore Pte Ltd)” and is seeking ”up to USD 1.817 billion in damages and other remedy, including non-monetary reliefs.” According to the document, the claim was submitted on Friday.

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