OIL & GAS

Indian gas importer issues force majeure notice to Qatargas

Indian liquefied natural gas (LNG) importers have issued force majeure notices to suppliers as domestic gas demand and port operations are hit by a nationwide lockdown to curb the spread of coronavirus, industry sources told Reuters.

Any reduction in purchases by India, Asia’s third largest economy and one of the top importers of the super-chilled fuel, are likely to further hit LNG prices, already battered by a drop in demand in China, where the virus emerged.

India imposed a sweeping lockdown of its 1.3 billion people on Wednesday for 21 days, and is only allowing the supply of essential commodities. The move prompted several industries to shut operations and some ports in the country to declare force majeure.

This in turn is spilling into the LNG market, several of the sources said. India’s top gas importer Petronet LNG has served a force majeure notice on Qatargas and is seeking delayed delivery of cargoes, two sources said.

“Gas demand has reduced drastically and it is likely to go down further,” a source with gas utility GAIL (India) said.

“Only fertiliser, power and refineries are running at parcel loads. Other local buyers have already issued force majeure so where should we sell LNG?” this source said, adding his firm had served force majeure notice to some suppliers and was in the process of sending notices to the remaining sellers.

India’s Gujarat State Petroleum Corp (GSPC) has also issued force majeure notices to its LNG suppliers, two sources said.

Source
Et energy world
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