GAIL India is reportedly in discussion with Russia’s Gazprom to delay and renegotiate a 20-year gas purchase deal undercut by low spot prices as weak demand at home forces it to stall some contracted supply. Shipments under the deal, initially expected to start in 2018/2019, are linked to crude oil prices which are rising while gas prices are expected to stay subdued for longer as major new production plants in Australia and the United States start up.
The company is also trying to juggle a rapidly expanded LNG book after embarking on a buying spree between 2011 and 2013 when the fuel was scarce and prices kept hitting new peaks.
GAIL is India’s flagship natural gas company integrating all aspects of the natural gas value chain including exploration and production, processing, transmission, distribution and marketing and related services.
