Friday, September 25, 2020

Indian LNG Importers Issue Force Majeure Notices

March 25, 2020

An LNG Tanker - Image by donvictori0 - AdobeStock

Indian liquefied natural gas (LNG) importers have started to issue force majeure notices as domestic gas demand slumps and as port operations in the country get hit by a lockdown to curb the spread of coronavirus, sources told Reuters.

"Demand has reduced drastically and it is likely to go down further, a company source with Gail (India) said.

"Only fertilizer, power and refineries are running at parcel loads. Other local buyers have already issued force majeure so where should we sell LNG," the source said.

Because of falling local demand, gas output of Oil and Natural Gas Corp could be hit, its Chairman Shashi Shanker told Reuters.

"As of now there is no impact on the production of oil and gas, but in the coming days gas production might get affected because of less off-take in view of the decrease in domestic demand," he said.

(Reporting by Nidhi Verma in New Delhi and Jessica Jaganathan in Singapore, editing by Louise Heavens)

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