Falling Natural Gas Costs Entice Price-Sensitive Indian Buyers
Falling Natural Gas Costs Entice Price-Sensitive Indian Buyers
Falling LNG prices are spurring demand from cash-strapped Indian buyers, who often enter the market when prices slump.
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(Bloomberg) — Falling LNG prices are spurring demand from cash-strapped Indian buyers, who often enter the market when prices slump.
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Asian liquefied natural gas has dropped below $13 per British thermal unit, making it more competitive with other fuels for Indian buyers, who are looking to make purchases on the spot market, according to traders.
Indian Oil Corp. and Bharat Petroleum Corp. are considering snapping up cargoes for delivery in the coming months, while Hindustan Petroleum Corp. has bought a shipment at about $12.80, they said.
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Global prices of the super-chilled fuel have fallen in the past month. European prices have been pushed down by a shift to milder weather and speculation Russian fuel may continue to feature in the continent’s energy mix, as well as US President Donald Trump’s move to pull back US support for Ukraine. Asian prices have also declined — though not by as much as in Europe — as inventories remain ample and demand weakens toward the end of winter.
More News:
- German gas supplier SEFE purchased close to 10 LNG cargoes on a DES basis for May 2025-Dec. 2026 delivery to India
- Bharat Petroleum Corp. is seeking to buy LNG supply on a DES basis for March and April delivery to India
- Indian Oil Corp. is seeking to purchase LNG cargoes on a DES basis for April 20 and April 24-25 delivery to Dahej and April 3-7 delivery to Dhamra
- HPCL bought an LNG cargo on a DES basis for March 10-April 30 delivery to the Chhara terminal in India at about $12.80/mmbtu
- “Japanese and Korean importers, including Kogas, Jera, Tokyo Gas and Osaka Gas, have recently turned to the spot LNG market to replenish stocks after a cold winter,” according to Masanori Odaka, an analyst with Rystad Energy
- The importers are looking to secure volumes at the lowest prices as futures continue to rise above spot prices, he said, adding that Asian spot prices for April are likely to settle below $14/mmbtu
Drivers:
- LNG send-out in Europe was at ~4.2 TWh/day on March 4, according to latest available data, -1.2% w/w: GIE
- European gas storage levels were ~37% full on March 4, compared with the five-year seasonal average of ~49%
- China’s 30-day moving average for LNG was 147k tons/day on March 5, 9.8% below the 5-year average, according to ship-tracking data compiled by Bloomberg
- Estimated flows to all US export terminals were ~15.1 bcf/day on March 6, -1.9% w/w: BNEF
Buy tender:
(Updates to add details after fourth paragraph.)
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