GAIL Settles $1.817 Billion LNG Claim Against SEFE for $285 Million

GAIL (India) Ltd settled a $1.817 billion arbitration claim for $285 million with SEFE Marketing & Trading Singapore Pte Ltd over the non-delivery of liquefied natural gas (LNG) under a 20-year contract signed in 2012. 

SEFE, formerly Gazprom Germania, stopped supplying LNG in June 2022, citing force majeure due to sanctions following Russia's Ukraine invasion. 

Supplies resumed in March 2023. GAIL initiated arbitration in December 2023, seeking damages for the disruption during soaring global LNG prices. 

The settlement, finalized on 15 January 2025, ends arbitration proceedings before the London Court of International Arbitration but leaves settlement details undisclosed.