Gazprom's move on long-term LNG contracts squeezes priority sector

Supply disruptions may be 'short-term', says GAIL

With Russia’s Gazprom invoking force majeure on long-term liquefied natural gas (LNG) contracts with GAIL (India), priority-sector customers like fertiliser units have already started feeling the pinch in India with a cut in supply.

According to industry sources, for the past two weeks, there has been a 10 per cent cut in supply from GAIL to key sectors like fertiliser.

GAIL has a total long-term LNG deal of around 14.5 million tonnes per annum (mtpa), of which around 2.5 mtpa, or 17 per cent, comes from Gazprom.

A company executive indicated that this may be a ‘short term’ problem and