* Indian importers declare force majeure as demand slumps
* Qatargas offers spot cargoes to buyers in Asia and Europe
* Chinese demand slowly returns
By Jessica Jaganathan
SINGAPORE, March 27 (Reuters) - Asian spot liquefied natural gas (LNG) prices crashed below $3 per million British thermal units (mmbtu) reversing three weeks of gains, after Indian buyers cancelled or diverted cargoes as a lockdown caused gas demand to slump.
The average LNG price for May delivery into northeast Asia LNG-AS was estimated at about $2.80 per million British thermal units (mmBtu), down 70 cents, or 20% from the previous week, traders said.
Prices for cargoes delivered in April were estimated around $3.00/mmBtu, also down 70 cents from a week ago.
Indian LNG importers, including top buyer Petronet LNG, Gail (India) (NS: GAIL ) and Gujarat State Petroleum Corp (GSPC), issued force majeure notices to suppliers this week as domestic demand and port operations were hit by a nationwide lockdown to curb the spread of coronavirus, sources told Reuters. GSPC also cancelled an import tender for 11 cargoes for deliveries in May to March, a company source said. force majeure in turn has caused a flood of supply in the spot market, depressing prices, traders said.
Qatargas has approached several buyers in Asia and Europe offering cargoes for loading or delivery in April, three sources familiar with the matter said. Two other traders said Qatar had offered about 10 cargoes, though this could not be confirmed. Energy also offered a cargo for early April loading from Sabine Pass, traders said.
Sakhalin Energy and Petronas were offering cargoes for delivery in May, they added.
Indonesia's Bontang plant may have sold an early-May loading cargo to a Chinese buyer, one source said, though this could not immediately be confirmed.
KUFPEC may have sold a cargo for first-half May loading from the Wheatstone plant to a portfolio company at $3 to $3.20 per mmBtu, the source added.
One the buy side, some requirements were seen from China and Colombia.
Thailand's PTT bought two cargoes for delivery in May from Qatargas at $3.05 to $3.15 per mmBtu through a buy tender, traders said.
Providing some upside, Woodside Petroleum WPL.AX , which produces LNG at North West Shelf LNG, Pluto LNG and has a stake in Wheatstone LNG in Western Australia, said on Friday its trading team has "recently begun placing some spot production back into China as industrial output and demand restarts".
It added that it would defer major maintenance at the North West Shelf LNG plant in Western Australia as it was slashing spending.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.