GAIL in talks with US, Russian LNG suppliers to secure relaxations in price, quantity: Report
GAIL is also in discussion with suppliers to reschedule and postpone some of the cargoes to minimise losses.
July 30, 2020 / 01:21 PM IST
Public sector gas transmission major, GAIL India, is in talks with the United States and Russian LNG (liquefied natural gas) suppliers to avail relaxation in long term contracted gas prices and volumes to minimise losses incurred due to a steep decline in consumption after COVID-19-induced lockdown.
"We are not terminating any of the contracts. However, we are taking up the matter with the suppliers to secure relaxations in prices and in the supply of LNG as per our requirement and consumption pattern," sources told Financial Express.
Moneycontrol could not independently verify the report.
GAIL's gas supply to the fertiliser sector has increased to 43 million metric standard cubic meters per day (mmscmd) from the average of 11-12 in April.
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"Power sector has recovered, but the gas distribution sector is still down, except the piped natural gas segment that supplies to residential areas," sources added.
GAIL is also in discussion with suppliers to reschedule and postpone some of the cargoes to minimise their losses. "We are seeking to secure a relaxation in pricing and quantity as domestic consumption and spot prices have dropped substantially," sources said.
The company plans to get around 90 cargoes from the US in FY21. This accounts for 36 percent of the total 250 cargoes or 14 million metric tonnes per annum (mmtpa) to be sourced during FY21.Click here for Moneycontrol's full coverage of the COVID-19 outbreak