GAIL restores supply cuts on LNG flow from ex Gazprom arm

NEW DELHI: State-run gas utility GAIL has restored supply cuts — imposed last year due to import disruptions caused by the Ukraine conflict — as a former Singapore-based subsidiary of Gazprom has resumed LNG (liquefied natural gas) shipments, company chairman Sandeep Gupta said on Thursday.
Shipments supplied since March and committed for June reflected volumes committed in a 20-year contract signed in 2012 with Gazprom Marketing and Trading Singapore Pte Ltd (GMTS), Gupta said, adding it will help boost gas consumption by 6-7%.
Disruption in shipments had forced GAIL to pare supply and scale down operations at its petrochemicals plant after GMTS stopped LNG shipments as it ended up under German government administration and a new name — Sefe Marketing and Trading Singapore Pte Ltd (SMTS) — following Russia’s invasion of Ukraine.
The company’s profit dropped 77% to Rs 603 crore in the fourth quarter of 2022-23 from Rs 2,683 crore a year ago, dragged down by petrochemicals. Sequentially, the profit marked a jump of 146% from third quarter.
For the full 2022-23 fiscal, standalone net profit stood at Rs 5,301.51 crore, 48% lower than Rs 10,363.97 crore in the previous fiscal.
Gupta said the company has a capex plan of Rs 10,000 crore, which will be funded through a mix of internal accruals and borrowings.

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