By BloombergNEF
Covid-19 related lockdowns in India are shifting the country's liquefied natural gas supply mix.
A record number of U.S. LNG cargoes arrived in just the first two weeks of April, even as LNG demand over the period fell 25% compared to last year.
Three cargoes from the U.S., one each from Sabine Pass, Cove Point and Corpus Christi, arrived in India between April 1-14. This is equal to U.S. deliveries made in the whole of 1Q 2020.
The shipments from Cheniere Energy Inc.'s Sabine Pass and Dominion Energy Inc.'s Cove Point are likely contracted volumes for GAIL India Ltd.
Low spot LNG prices and demand loss due to Covid-19 related shutdowns is making it difficult for GAIL to offload its U.S. cargoes in other markets, and forcing it to bring the LNG home to India.
GAIL usually swaps its U.S. cargoes with other suppliers to reduce shipping costs or sells them directly to alternative markets. More than half of the company's U.S. LNG supply was re-sold to portfolio players or delivered elsewhere between 1Q-3Q 2019.
India's LNG imports in 2020
