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India’s GAIL on the hunt for LNG as ex-Gazprom firm cuts LNG supply

India’s GAIL on the hunt for LNG as ex-Gazprom firm cuts LNG supply

India’s largest gas distributor GAIL (India) Ltd (GAIL) has begun cutting gas supplies to a range of industries after ex-Gazprom unit GM&T Singapore failed to deliver five LNG cargoes.

According to Times of India, the company has not delivered the cargoes under a 20-year deal signed in October 2021 for 2.5 million tonnes a year of liquefied natural gas (LNG).

Reliant on imports for 50% of its gas supply, India’s fertiliser industry could be hardest hit by the cuts, with a reliable gas supply essential to produce urea – a key component in fertiliser.

Other reports suggest that the state-run company has reduced operating capacity at its Pata petrochemical complex by 60% to save gas for other clients.

The source also revealed that GAIL has advanced maintenance shutdown of some units at the 810,000 tonne-per-year plant.

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