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Russia's Novatek and India's GAIL are expected to finalize a natural gas sales agreement.

Russia's Novatek and India's GAIL are expected to finalize a natural gas sales agreement.

Natural Gas March 22, 2023

Date – 04/02/2023 Russia's largest liquefied natural gas (LNG) producer, Novatek, is close to a deal to supply gas to GAIL (India) Ltd as it seeks alternative markets to Europe, Reuters reported. Sources state that the negotiations between the companies for a contract are in their final stages and could result in a deal being sealed within a week. The exact volume of the agreement will be contingent upon logistics factors, including shipping and insurance. GAIL is looking to bounce back after suffering a 93% drop in profits during Q3 ending December, due to disrupted supply from a former subsidiary of Gazprom. In 2012, GAIL entered into a 20-year agreement with GMTS, which involved an average yearly purchase of 2.5 million tons of LNG delivered to GAIL. At that time, GMTS was a subsidiary of Gazprom Germania, now known as “Sefe”. However, due to Western sanctions, the Russian parent company relinquished ownership of “Sefe”. As the largest gas distributor in India, GAIL has had to limit gas supply and decrease operations at its petrochemical facilities due to the halt of supplies under the 20-year agreement with Gazprom Marketing and Trading Singapore (GMTS). According to sources, Novatek is offering a monthly delivery of several LNG cargoes to GAIL through a long-term agreement, with the delivery mode being "free-on-board", where the buyer is responsible for arranging shipping and insurance. However, GAIL has requested Novatek to make deliveries to Indian ports, as shipping and insurance companies are cautious about providing services for Russian oil and gas due to the Western sanctions imposed on Moscow in response to the Ukraine invasion. Note – Every photo is symbolic (Photo Source: Google) All news and stories given on this website are reported by the reporter or taken from some source. Our endeavor is and will continue to provide you with the best information. The responsibility of this news and other things will be with the author (reporter) and the source.