SINGAPORE—LNG cargoes are being diverted away from ports in India as surging coronavirus cases there hamper domestic gas demand, trade and shipping sources said on May 3.
Six LNG tankers diverted away from India since April 20, changing the destination to northeast Asia, Europe and Kuwait instead, said Rebecca Chia, an analyst with data intelligence firm Kpler.
Further diversions and reduction in shipments to India are expected this week, trade sources told Reuters, although one source said that companies are adopting a wait-and-see approach to see how extensive the lockdowns will be.
Gas demand has taken a hit from some sectors due to lockdowns imposed in several parts of the country, they added.
India on May 3 reported more than 300,000 new coronavirus cases for a 12th straight day to take its overall caseload to just shy of 20 million, as scientists predicted a peak in infections in the coming days.
At least 11 states and union territories have imposed some form of restrictions to try and stem infections, but Prime Minister Narendra Modi’s government is reluctant to impose a national lockdown, concerned about the economic impact.
“Gas demand from city-gas distribution such as transport and commercial sectors is down, and gas-based power demand is not much as spot prices have not come down to acceptable levels,” a source based in India said.
India’s LNG imports dropped to about 1.86 to 2 million tonnes in April, down 11 to 14% from March’s 2.16 to 2.21 million tonnes, according to ship-tracking data from Refinitiv Eikon and Kpler.
This is still well above the 1.43 to 1.48 million tonnes of LNG imports seen into the country in April 2020 after India’s gas demand was hit by a nationwide lockdown.
Recommended Reading
Then and Now: 4D Seismic Surveys Cut Costs, Increase Production
2025-03-16 - 4D seismic surveys allow operators to monitor changes in reservoirs over extended periods for more informed well placement decisions. Companies including SLB and MicroSeismic Inc. are already seeing the benefits of the tech.
E&P Seller Beware: The Buyer May be Armed with AI Intel
2025-02-18 - Go AI or leave money on the table, warned panelists in a NAPE program.
AI Moves into Next Phase of E&P Adoption as Tech Shows Full Potential
2025-03-25 - AI adoption is helping with operations design and improving understanding of the subsurface for big companies. Smaller companies are beginning to follow in their footsteps, panelists said at Hart Energy’s DUG Gas Conference.
Momentum AI’s Neural Networks Find the Signal in All That Drilling Noise
2025-02-11 - Oklahoma-based Momentum AI says its model helps drillers avoid fracture-driven interactions.
Digital Twins ‘Fad’ Takes on New Life as Tool to Advance Long-Term Goals
2025-02-13 - As top E&P players such as BP, Chevron and Shell adopt the use of digital twins, the technology has gone from what engineers thought of as a ‘fad’ to a useful tool to solve business problems and hit long-term goals.