In accordance with head of finance at GAIL (India) Ltd, the company is looking for long-term gas import contracts and intends to sign one soon to make up for interrupted supplies from a former subsidiary of Russian energy giant Gazprom. The largest gas distributor in India reported a 93% fall in net profit for the December quarter as it transferred less gas domestically as a result of a reduction in liquefied natural gas (LNG) supplies as a result of a deal with Singapore and Gazprom Marketing (GMTS). GAIL is negotiating to source gas with Abu Dhabi National Oil Co (ADNOC) and
a number of other parties. Rakesh Kumar Jain said on an analyst call, "I think we'll get a better offer." "The need for gas in the Indian economy is rising. We were looking for gas sources even if GMTS hadn't occurred. Yes, but the GMTS situation has made us more forced, "he stated. In 2012, GAIL and GMTS reached a 20-year agreement for GAIL to purchase an average of 2.5 million tonnes of LNG annually. At the time, GMTS was a part of Gazprom Germania, which is now known as Sefe. However, Sefe's Russian parent company no longer owns it as a result of Western sanctions related to Russia's invasion of Ukraine.
Sefe has stopped supplying GAIL. In order to meet local demand, GAIL is exploring more gas import agreements, according to Jain, and the restart of supply under the Gazprom contract would allow his business the freedom "to be able to participate more in the international markets."
A portion of the LNG that the state-run corporation purchased from the United States free-on-board as part of its long-term agreements has been traded on international markets. According to Jain, GAIL would import eight additional LNG cargoes from its U.S. portfolio in 2023 that it had previously sold to a worldwide client. Jain stated, "We receive 90 shipments from the USA and plan to bring all of them to India.
