NEW DELHI, May 18 (Reuters) – Indian gasoline utility GAIL (India) Ltd (GAIL.NS) sees native gasoline demand rising by 6%-7% within the fiscal 12 months to March, pushed by decrease costs and the resumption of provide beneath a take care of the previous unit of Russia’s Gazprom, its chairman mentioned on Thursday.

Gas consumption in India fell by about 6% in 2022-23 as greater costs pushed customers to cheaper liquid fuels and as Russia’s invasion of Ukraine disrupted provide, forcing GAIL to ration supplies.

“We definitely see this year to be very promising as far as the natural gas consumption is concerned,” mentioned Sandeep Kumar Gupta at an earnings convention.

Gupta doesn’t count on a spike in international liquefied pure gasoline (LNG) costs within the close to future as shares in Europe are at “sufficiently” excessive ranges in comparison with final 12 months, when Germany’s Sefe stopped provides to GAIL to fulfill its personal demand.

The Indian firm will get 4 LNG cargoes from Sefe in June, equal to the volumes it was getting beneath a take care of a former unit of Russia’s Gazprom, he mentioned.

“Hopefully we will get similar volumes in future also.”

Sefe resumed provides to GAIL from March this year.

In 2012, GAIL agreed to a 20-year LNG buy take care of Gazprom Marketing and Singapore (GMTS) for annual purchases of a median of two.5 million tonnes of LNG.

At the time, GMTS was a unit of Gazprom Germania, now known as Sefe, however the Russian father or mother gave up possession of Sefe after Western sanctions had been imposed on Moscow over the Ukraine warfare final 12 months.

India’s gasoline demand is anticipated to rise considerably because it needs to lift the share of gasoline in its power combine to fifteen% by 2030 from 6.2% now.

Gupta mentioned his firm has acquired affords from greater than six firms in response to its tender seeking to buy a 26% stake in an LNG plan within the U.S. and a long-term provide of gasoline.

Bids are being evaluated, he mentioned, including GAIL can also be searching for long-term gasoline offers with Qatar and UAE.

Reporting by Nidhi Verma; Editing by Sharon Singleton

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