GAIL initiates legal proceedings against former Gazprom unit for default in LNG supplies, seeks $1.8 billion in damages

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GAIL India has sued the former Gazprom unit, now run by SEPE Marketing & Trading Singapore Pte Ltd, for default in LNG Supplies. The company has also sought a compensation of $1.8 billion for its damages, said the PSU in its stock exchange filing on Friday. Also Read: GAIL share price rise more than 3% to scale 52 week high on improved earnings prospects led by strong gas demand The dispute between the two companies was raised after the former Gazprom unit failed to supply LNG cargo to GAIL under a long-term LNG Contract.

GAIL shares closed 3.42% higher at ₹136.15 per share on BSE on Friday. "SEFE Marketing & Trading Singapore Pte Ltd (erstwhile Gazprom Marketing and Trading Singapore Pte Ltd)" and has sought "up to USD 1.817 billion and alternative relief including non-monetary reliefs," said the Indian PSU in its stock exchange filing on Friday. Also Read: Reliance, Gail, IOC’s petchem margins to remain suppressed, says Prabhudas Lilladher; downgrades RIL The petrochemical company, in its stock exchange filing, said that it has filed an arbitration claim before the London Court of International Arbitration for non-supply of LNG cargoes under a long-term contract.

IN 2012, GAIL 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. Also Read: GAIL India Q2 Results: Net profit jumps 70% to ₹2,405 crore; revenue dips 1.3% QoQ The deal was signed with Gazprom Marketing and Singapore (GMTS). At the time of finalising the deal, GMTS as a unit of Gazprom Germania now turned into Sefe.