Indian liquefied natural gas (LNG) importers have declared force majeure as domestic demand for the fuel and port activities slowed down amid the nationwide lockdown to curb the coronavirus spread. India is the world’s fourth-largest LNG importer and reduced purchases by the country will likely affect prices of the super-chilled fuel.
India began implementing a national lockdown for its 1.3 billion people on Wednesday. The lockdown will last for 21 days and is expected to hurt domestic gas demand as industrial activity will slow down during the period. Demand slowdown in India follows the same trend in China, South Korea, and Japan.
Petronet LNG, the country’s top importer, has issued an FM notice requested for cargo delivery delays to Qatargas and ExxonMobil, industry sources said. Gas utility GAIL has sent a similar notification to some of its suppliers. GSPC has also invoked FM and canceled a purchase tender for 11 LNG cargoes, the sources added.
At the same time, some Indian ports have also declared FM. Adani Ports, which operates ten ports in India, issued a notification saying that operations would continue despite the force majeure. However, it would not be responsible for any delays.
