LNG carriers are lining up outside Indian ports as suppliers reject force majeure notice from Indian importers amid the country's national lockdown. Since the lockdown, the discharge rate at Indian terminals such as Dahej and Hazira has been lower. For the first two weeks of the lockdown, India has discharged 12 LNG cargoes, down from 16 clips in the previous two-week period.
Suppliers are not ready to accept FM. At the same time, lower demand and the tank top situation in Dahej and Hazira render importers unable to take cargoes. Some buyers have negotiated and agreed with suppliers about a deferment for LNG cargoes due to arrive in India in April.
Tanker tracking data showed at least three LNG vessels are idling along the western coast of India. These ships are Malanje, which sailed from Soyo LNG terminal, Angola on March 13, LNG Abuja 2, which departed from Nigeria's Bonny LNG terminal on March 15, and Mubaraz which sailed from UAE's Das Island on March 26. Meanwhile, Rioja Knutsen departed from the US' Sabine Pass LNG terminal on March 2 and has been slow-sailing toward the Dahej LNG terminal.
The decline in natural gas demand has pushed India's spot LNG prices benchmark to an all-time low of $2.00/MMBtu on April 1. Taking advantage of low spot prices, Reliance issued a buying tender for cargo for June 10-15 delivery to either Mundra or Dahej terminal.
