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Russia’s Gazprom defaults on

five LNG deliveries to India

PROJECTS & RUSSIAN gas monopoly Gazprom has defaulted be, although it has promised to supply LNG on
COMPANIES on the delivery of five LNG cargoes to India since a ‘best endeavour’ basis. Meanwhile, GAIL is
June, according to the Press Trust of India. Gaz- looking for alternative sources of LNG in the
prom has been unable to deliver the cargoes, Middle East and the US. It is also looking into
citing difficulty in sourcing the LNG owing to legal recourse, but hopes to resolve the matter The contract
international sanctions resulting from Russia’s through diplomacy, Indian media reported.
invasion of Ukraine. GAIL’s agreement calls for Gazprom to stipulates that
The inability to source LNG is apparently a deliver 2mn tonnes in 2021, and increase this
blowback from Russia’s own sanctions imposed to 2.5mn tonnes during 2022. A full volume of the cargoes will
on companies and countries that have adopted 2.85mn tonnes should be reached in 2023 and
US and European sanctions against Moscow. continue for the lifespan of the contract. Ship- be fulfilled in the
Among them are the German unit of Gazprom ments during 2022 were expected to number future, but as yet,
and Polish shareholders in the Yamal gas pipe- around 40 and reach 46 during 2023.
line to Europe. The Russian counter-sanctions Russia made the move to impose its own Gazprom has not
cover companies that Gazprom uses to supply sanctions to prevent its gas reaching some West-
LNG to India. ern customers that had brought in sanctions. informed GAIL
The deliveries were scheduled to be received Moscow sanctioned 31 companies, among
by GAIL (India), the country’s largest gas com- them Gazprom Germania, Polish pipeline com- as to when that
pany, which has a long-term contract with pany EuRoPol Gaz and Gazprom subsidiaries might be.
Gazprom Marketing and Trading Singapore to in Austria, Belgium, Bulgaria, Czechia, France,
supply 2.85mn tonnes per year (tpy) of LNG. Germany, Italy, Hungary, Poland, Romania, Slo-
However, Gazprom Singapore is operated by vakia, Switzerland, UK, US and Singapore.
Gazprom Germania. As such, it no longer has India itself has refused to impose Western-led
access to Russian gas. sanctions against Russia and continues to pur-
The contract stipulates that the cargoes will chase large quantities of Russian crude oil at
be fulfilled in the future, but as yet, Gazprom discounted prices, much to the chagrin of New
has not informed GAIL as to when that might Delhi’s US and European allies.™

P8 www. NEWSBASE .com Week 29 22•July•2022