Indian LNG importers issue force majeure notices as gas demand slumps

Singapore/New Delhi: 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 the world’s fourth-largest importer of the super-chilled fuel, is likely to further hit LNG prices, already cut by a drop in demand in China, where the virus emerged.

Spot prices in Asia fell to a record low in February but had been rising due to India’s LNG purchases and a slow recovery in China as people returned to work. But with gas use down in Europe and now India, prices could reverse recent gains.