No let up in LNG imports despite high prices
Indian importers are eagerly snapping up spot cargo deals for November to January Dahej delivery despite rising LNG prices.
On October 24, GAIL closed a tender for three cargoes: the first is expected from November 16 till December 31 while the remaining two are expected in January. GAIL paid $8.90 to $9.30/mmbtu for the three cargoes, two of which are sourced from Shell while the third is from Chevron.
GSPC meanwhile is bringing in a 'prompt' cargo between December 10 and 20 at a high $9.20/mmbtu in sharp contrast to the $8.65/mmbtu it paid for a cargo deal awarded October 20. Also Bharat Petroleum closed a two-spot cargo tender on November 2: one expected in the first half of January and the other in the first half of February.
Surprisingly, BPCL cancelled a tender which closed October 24 for a single spot that it specifically requested for delivery on December 18. "The tender was cancelled because the prices quoted were too high," we hear.
IOC is also bringing in two cargoes, one in the second half of November from BP and another in December from Shell, both at approximately $8.50/mmbtu. Petronet-LNG is breaking its two-month absence from the spot market: it last landed a spot on October 8 but is expected to bring in a Qatari spot cargo in mid-December.