Spot LNG imports at Dahej reduce to a trickle

Vol 23, PW 11 (09 Apr 20) Midstream & Downstream
       

GSPC landed its fifth cargo at Mundra on April 3 aboard LNG tanker Shahamah, sourced from ADGAS, but that does not mean it is business as usual for India's LNG sector.

More telling is the fact GSPC has scrapped a tender issued in March for 11 cargoes for deliveries between May 2020 and March 2021 at the rate of one shipment a month divided between Dahej and Mundra. "Everyone is nervous and busy reviewing spot sourcing plans," says an industry source.

Worse is news from Dahej where spot LNG deliveries will come to a halt in the second half of April because the storage tanks are full to the brim and over-flowing. "Gas demand has evaporated," observes a Petronet-LNG source.

He adds the terminal's R-LNG send out rate has dropped from a high of 70m cm/d to less than half at 35m cm/d since the government announced a 21-day national lockdown on March 24. "The unanimous decision of all Indian buyers is to go slow on LNG buying," adds a GAIL source.

Over March and April, Petronet-LNG, GAIL, GSPC and IndianOil all issued Force Majeure notices to suppliers. "It was the only option available," we hear.

"If you don't declare Force Majeure what do you do when the tanker arrives?" Even if somebody wants to bring in an LNG delivery, it can't because there is no space in the storage tanks.