Oil Minister HS Puri on Wednesday said that he expects the liquefied natural gas (LNG) supply issue between state-run GAIL and a former unit of Russia’s Gazprom to be resolved. The supplies have been disrupted since June this year.

It is a discussion between GAIL and Gazprom. We have a very time-tested relationship with the country involved and the entities involved. It will be resolved. No problem. At least my expectation is...,” Puri told reporters on the sidelines of the World LPG Week 2022.

In 2012, GAIL inked a 20-year deal with Gazprom to buy 2.85 million tonnes (mt) of LNG. The supplies commenced six years later and were to reach full volume in 2023.

Gazprom Marketing and Trading Singapore (GMTS) had signed the deal on behalf of Gazprom. GMTS was moved to Gazprom Germania and in early April, Gazprom gave up the ownership of the German unit. Subsequently, the former Gazprom unit defaulted on LNG supplies to India.

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Fuel price revision

Asked whether the government will revert the revision in retail prices of diesel and petrol, Puri said “Now hopefully the international prices, they are not down yet. Yesterday they were above $90 a barrel, and today the Indian basket is $88. So what have we done? We have diversified our supplies. If they (OMCs) get it cheaper somewhere, they will get it. As a result the gradation of the suppliers has changed a little. But it is a dynamic situation.”

Emphasising that India has been successfully navigating the global energy crisis, the Minister said, “We will purchase oil from wherever available at reasonable prices.”

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