On Monday, GAIL (India) Ltd started gas rationing, cutting supplies to fertiliser and industrial clients after imports were hit under its deal with a former unit of Russian energy giant Gazprom, said by the company. They said lower gas supplies would impact India’s urea production, and a sustained cut would lift imports of the soil nutrient.

Gazprom Marketing and Trading Singapore (GMTS), now a subsidiary of Gazprom Germania, has failed to deliver some liquefied natural gas (LNG) cargoes to GAIL and has said it may not be able to meet supplies under their long-term deal.

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The state-run company is operating its petrochemical complex at Pata in northern India at about 60 per cent capacity to save gas for other clients, they said. The media reported that the GAIL has advanced maintenance shutdown of some units at the 810,000 tonne-a-year plant.

However, following Western sanctions against Russia over its invasion of Ukraine, Gazprom gave up ownership of Gazprom Germania in early April without explanation and placed parts of it under Russian sanctions.