Natural Gas Intel: Uncertainty Reigns in Global LNG Market as Coronavirus Lockdowns Persist

3 April 2020

“Another thing hurting the market is that India tends to be very price sensitive and takes a lot of LNG when prices get low,” said Poten & Partners’ Kristen Holmquist, business intelligence forecasting manager. “And unfortunately, when demand in India isn’t there, that sink for LNG tends to go away.”

India’s LNG imports hit a record high of 2.75 million tons in February, as a number of cargoes were redirected there from the Far East, according to data intelligence firm Kpler. Natural gas demand in India had been growing rapidly, driven primarily by growth in the residential and commercial sectors. Holmquist said during a recent webinar that LNG makes up more than 50% of the country’s gas supplies. She added that the largest number of contracts in India are served by LNG producers in Qatar and the United States. 

Poten projects that India’s gas demand will decline by one million tons if the current lockdown lasts only three weeks. If it extends beyond that, the ship broker has forecasted a drop in demand of more than 3 million tons. 

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