GAIL settles $1.8 bn claim against ex-Gazprom unit for $285 million
New Delhi: State-owned gas utility GAIL (India) Ltd has settled a $1.817-billion claim against a former unit of Russian energy giant Gazprom for $285 million, according to a stock exchange filing.
GAIL had in December 2023 initiated legal proceedings against SEFE Marketing & Trading Singapore Pte Ltd in the London Court of International Arbitration for non-delivery of liquefied natural gas (LNG) under a long-term contract.
It sought $1.817 billion in compensation for the default in delivery of committed cargoes by SEFE.
“GAIL (India) Limited and SEFE Marketing & Trading Singapore Pte Ltd have entered into a settlement agreement dated January 15, 2025,” the Indian firm said in the stock exchange filing. “The terms of the settlement agreement include payment of $285 million by SEFE Marketing & Trading Singapore to GAIL and withdrawal of arbitration proceedings before London Court of International Arbitration.”
The company gave no details of the settlement.
GAIL in 2012 signed a 20-year deal to buy as much as 2.85 million tonnes per annum of LNG with Russian energy giant Gazprom.
The deal was signed with Gazprom Marketing and Singapore (GMTS), which at the time was a unit of Gazprom Germania, now called Sefe. The Russian parent gave up ownership of Sefe after Western sanctions were imposed on Moscow over its invasion of Ukraine in 2022. SEFE had stopped supplying LNG to the Indian company in June 2022 to meet its own demand.
