GAIL-Gazprom LNG Deal

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The centre may neither pursue arbitration with Gazprom, the world's largest natural gas explorer, nor accept a penalty from the company after it halted supplies to GAIL in May

A former Gazprom subsidiary reneges on its supply contract forcing the state-owned gas distributor to cut back supplies to key industries

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

Earlier this month, Moscow slapped sanctions on owner of the Polish part of the Yamal pipeline that carries Russian gas to Europe, as well as the former German unit of the Russian gas producer Gazprom

This comes a few weeks after India's first LNG cargo from the US landed at Dabhol regasification terminal in Maharashtra

The deal signed in 2012 is a 20-year LNG sales and purchase agreement following the signing of an earlier basic framework agreement (BFA) by the two companies in May 2011