LNG vessels diverted from India as Covid hits demand

Spanish Market: Natural gas
30/04/21

At least five LNG vessels heading to India have been diverted or are delaying their arrival in the country as a surge in Covid-19 cases slashes demand for the fuel.

Two LNG vessels that were originally meant to unload their cargoes in India this month have been diverted to other destinations. And at least three other India-bound vessels have either slowed their speeds or paused their journeys, according to vessel tracking data from analytics firm Vortexa.

More India-bound vessels are likely to be turned away in the coming weeks, market participants said, as the country's coronavirus outbreak showing no signs of abating.

The 160,276m³ Cubal loaded at Angola LNG's 5.2mn t/yr Soyo LNG facility on 12 April and was scheduled to arrive at the 17.5mn t/yr Dahej terminal in the western state of Gujarat on 30 April. But the vessel signaled a change in destination on 29 April, to China's Fujian province, where it is now expected to arrive on 9 May.

The 180,000m³ Gail Bhuwan was due to deliver a US LNG cargo to Dahej, which is operated by state-controlled Petronet, on 22 April. But the vessel is now heading to Kuwait's 5.7mn t/yr Mina al-Ahmadi LNG terminal, where it is estimated to arrive on 1 May.

State-controlled gas distributor Gail was meant to take receipt of the cargo, which loaded at the 5.75mn t/yr Cove Point LNG facility in the US on 24 March. But Gail issued a tender on 15 April to sell the cargo, specifying various possible destinations including south Asia, the Middle East, Singapore, Brazil and Argentina, and Europe. The tender was awarded to Shell Trading, market participants said.

The 174,000m³ Gaslog Greece vessel was due to head to India after loading a cargo at the 3.7mn t/yr Punta Europa terminal in Equatorial Guinea on 1 April. It arrived offshore India's west coast on 25 April but has been circling the area ever since.

The 137,540m³ Ish is scheduled to arrive at Dahej on 2 May after loading at Abu Dhabi's 5.6mn t/yr Das Island LNG facility on 14 April. But its speed fell from 17 knots (31km/h) on 15 April to just 5 knots on 20 April, when it was near the Khor Fakkan anchorage Abu Dhabi. It then gradually picked up speed and is currently off India's west coast travelling at 9 knots. The seller has been in talks with various buyers in the last few days to divert the cargo but the outcome of those discussions is unclear, market participants said.

The 137,000m³ Mubaraz loaded at Das Island on 21 April and is scheduled to deliver its cargo to Dahej on 6 May. But the vessel was floating in the Mideast Gulf from 21-28 April.

Covid curbs hit demand

The diversions, slowdowns and idling of vessels reflect high stock levels at Indian terminals as Covid-19 restrictions and lockdowns hit India's LNG consumption, market participants said. Stock levels at Dahej are close to 90pc of capacity, compared to around 60-70pc a month earlier, one India-based trader said.

Measures to curb India's Covid-19 outbreak have hampered gas demand from the industrial sector, even as factories and industries remain allowed to operate. Some manufacturing and industrial plants have been hit by falls of up to 50pc in their labour force because of Covid-19, resulting in a slowdown in processes and gas consumption, market participants said.

Gas demand from city gas firms and refineries has fallen by around 10-20pc and 5pc respectively since the second wave of Covid-19 cases began, the India-based trader estimated. And LNG demand could take a further hit if the restrictions and lockdowns are extended further, he said.

India reported a record 386,000 new cases across the country yesterday, taking its total case count to 18.7mn. The government has already extended a lockdown in Maharashtra state, which began on 14 April, to 15 May from 1 May previously as it struggles to contain a sharp surge in Covid-19 infections. Maharashtra is one of the most badly hit states in the country, recording 66,159 new Covid-19 cases and 771 deaths on 29 April alone.

A slew of regulations and restrictions have been imposed at terminals in India on the back of the surge in Covid-19 cases. Visitors to vessels at Dahej must undergo a RT–PCR real-time detection test for Covid-19, as well as produce evidence they are not infected by the virus.

Dahej received 17 cargoes in April, compared to 22 in each of March and February. It last received a cargo on 28 April from the 136,026m³ Raahi, which loaded at the 77mn t/yr Ras Laffan facility in Qatar on 23 April, Vortexa data show.

By Joey Chua

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

02/04/25

Australia’s gas leaders hit out at market intervention

Sydney, 2 April (Argus) — Senior figures in Australia's upstream gas sector have hit out at plans for intervention in the heavily regulated industry, as debate continues on how to best address domestic supply shortfalls later this decade. The federal Coalition in March announced National Gas Plan including a 50-100 PJ/yr (1.34bn-2.68bn m³/yr) domestic reservation system aimed at forcing the three LNG exporters based in Queensland's Gladstone to direct more supply to the eastern states' market. But oversupplying the market to drive down prices would destroy the viability of smaller gas projects, Australian independent Beach Energy's chief executive Brett Woods said at a conference in Sydney on 1 April. The domestic-focused firm, which will export some LNG volumes via its Waitsia project in 2025, warns that such a move by the Peter Dutton-led opposition would reduce export incomes while harming Australia's international reputation. The volumes impacted by the policy could reach around 900,000-1.8mn t/yr. Expropriation of developed reserves is equivalent to breaking contracts with LNG buyers and with the foreign and local investors that the country needs for ongoing economic security, Woods said on 1 April. Domestic gas reservation systems put in place by the state governments of Western Australia (WA) and Queensland, designed to keep local markets well supplied, were "clearly supportable", Woods said, but only future supply should be subject to the regulations. LNG terminals, which represent about 70pc of eastern Australia's total gas consumption and shipped 24mn t in 2024 , should not be blamed for the failure of governments to expedite new supply and plan for Australia's gas future, head of Shell Australia Cecile Wake said in response to the Coalition's proposal. Shell's QGC business supplied 15pc of its volumes to the local grid, with the remainder shipped from its 8.5mn t/yr Queensland Curtis LNG project, Wake added. Canberra has moved to promote gas use as a transition fuel to firm renewable energy in line with its 2030 emissions reduction targets, but progress has been slow as reforming laws appear to be hampering development . The state governments, particularly in gas-poor Victoria and New South Wales (NSW), must recognise the need for locally-produced supply and streamline the approvals processes, especially environmental permits, executives said. But despite pleas for an end to years of interventionist policy — including the governing Labor party's measures to cap the price of domestic gas at A$12/GJ , Australia's fractured political environment and rising cost of living has sparked largely populist responses from its leaders. A so-called "hung" parliament is likely to result from the 3 May poll , with a variety of mainly left-leaning independents representing an anti-fossil fuel agenda expected to control the balance of power in Australia's parliament. LNG debate sharpens Debate on the causes of southern Australia's gas deficit has persisted, and the ironic outcome of underinvestment in gas supply could be LNG re-imports from Gladstone to NSW, Victoria and South Australia, making fracked coal-bed methane — liquefied in Queensland and regasified — a likely higher-emissions alternative to pipeline supply. Several developers are readying for this possibility , which is considered inevitable without action to increase supply in Victoria or NSW, increase winter storages or raise north-south pipeline capacity. Australian pipeline operator APA appears to have the most to lose out of the active firms in the gas sector. APA chief executive Adam Watson this week criticised plans for imports, because relying on LNG will set the price of domestic gas at a detrimental level, raise emissions and decrease reliability of supply, Watson said. The firm is planning to increase its eastern pipeline capacity by 25pc to bring new supplies from the Bass, Surat and Beetaloo basins to market. But investment certainty is needed or Australia will risk needing to subsidise coal-fired power for longer if sufficient gas is unavailable to back up wind and solar generators with peaking power, Watson said. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Next US tariffs to take effect 'immediately'

01/04/25

Next US tariffs to take effect 'immediately'

Washington, 1 April (Argus) — President Donald Trump plans to announce a sweeping batch of tariffs on Wednesday afternoon that will take effect "immediately", the White House said today. Trump will unveil his much anticipated tariff decision Wednesday at 4pm ET during a ceremony at the White House Rose Garden. While the administration has announced the effective date, there is little clarity on what goods will face tariffs at what rates and against which countries, leaving the government agencies that will be tasked with enforcing new tariffs largely in the dark. "The president has a brilliant team of advisers who have been studying these issues for decades, and we are focused on restoring the golden age of America and making America a manufacturing superpower," the White House said today, brushing off criticism from economists, industry groups and investors. Economic activity in the US manufacturing sector contracted in March as businesses braced for Trump's tariff threats. Trump has previewed or announced multiple tariff actions since taking office. The barriers in place now include a 20pc tariff on all imports from China, in effect since 4 March, and a 25pc tax on all imported steel and aluminum, in effect since 12 March. A 25pc tariff on all imported cars, trucks and auto parts, is scheduled to go into effect on 3 April, the White House confirmed today. Trump and his advisers have previewed two possible courses of action for 2 April. Trump has suggested that all major US trading partners are likely to see a broad increase in tariffs in an effort to reduce the US trade deficit and to raise more revenue for the US federal budget. But Trump separately has talked about the need for "reciprocal tariffs", contending that most foreign countries typically charge higher rates of tariffs on US exports than the US applies to imports from those countries. In that scenario, high tariffs become a negotiating tool to bring down alleged foreign barriers to US exports. Treasury secretary Scott Bessent told Fox News on Monday night that the second course is the one Trump is more likely to take. Trump will announce "reciprocal tariffs" and "everyone will have the opportunity to lower their tariffs, lower their non-tariff barriers, stop the currency manipulation" and "make the global trading system fair for American workers again", Bessent said. But the White House insisted today that the new tariffs will not be a negotiating tool. Trump is "always up for a good negotiation, but he is very much focused on fixing the wrongs of the past and showing that American workers have a fair shake", the White House said. Trump's words and actions already have drawn retaliatory tariffs from Canada and China, and the EU is preparing to implement its first batch of counter-tariffs in April. Trump, for now, has deferred his tariff plans for imported Canadian and Mexican oil and other energy commodities. But the US oil and gas sector, which depends on pipelines and foreign-flagged vessels to transport its crude, natural gas, refined products and LNG, will feel the effects of tariffs on imported steel and proposed fees on Chinese-made and owned vessels calling at US ports. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexican peso weakness may partially offset US tariffs

01/04/25

Mexican peso weakness may partially offset US tariffs

Mexico City, 1 April (Argus) — Volatility in the peso/dollar exchange rate may help to partially offset any tariffs that US President Donald Trump decides to impose on imports from Mexico as the ensuing peso depreciation would make its exports more competitive, said analysts from US bank Barclays. President Trump will announce Wednesday his next decision related to the threat to impose a 25pc tariff against imports from its commercial partners Mexico and Canada. Trump has delayed the decision twice, and it is likely that he will do so again, given the serious repercussions the tariffs could cause to the US economy, said Latam chief economist at Barclays, Gabriel Casillas, during a webinar held Monday. The base scenario for Barclays is that Trump's administration will finally step back from imposing tariffs on Mexico and Canada and rather go for an early renegotiation of the (US Mexico Canada Free Trade Agreement (USMCA) this year, said Casillas. In this scenario, the Mexican peso would strengthen to between Ps19.5 to Ps19.00 to the greenback, he added. However, if Trump's administration decides to impose the 25pc tariffs on all Mexican imports as he has threatened to do, then the peso would weaken to Ps24/$1, said Erik Martinez, foreign exchange research Analyst at Barclays during the same webinar. "If tariffs were imposed, 25 percent on all imports, we think a good portion of this would be absorbed by the exchange rate," said Casillas. A weaker peso makes Mexican exports more competitive abroad. The Mexican peso on Tuesday was trading at around Ps20.30 to the dollar, and has weakened by 18.5pc in the past year from about Ps16.6 to the dollar a year ago. If President Claudia Sheinbaum's administration avoids the tariffs, the peso may strengthen to around Ps 19.00/$1 in upcoming days, said Martinez. If the tariffs are applied during a brief period or only for the automobile sector, the exchange rate could range between Ps21.00-22.00 per dollar, said Martinez. However, even without any tariff being applied, Mexico's economy is expected to grow only by around 0.7pc this year, less than the estimates made late in 2024 of around 1.4pc, due to the deceleration of the US economy, Mexico's main trading partner, said Casillas. The US economy is showing signs of slowing down, specially in the industrial sector, which will impact Mexico's growth for the year. Also, this uncertainty is directly affecting any upside expected from so-called nearshoring as companies would now lose interest in moving their manufacturing lines to Mexico if there is no clear benefit in using the USMCA to avoid tariffs, said Casillas. By Édgar Sígler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia's OCE sees higher LNG export earnings

01/04/25

Australia's OCE sees higher LNG export earnings

Sydney, 1 April (Argus) — Australia's Office of the Chief Economist (OCE) has revised up its LNG export earnings forecasts for the present fiscal year and the next, given global supply issues and higher than expected prices. Seasonal pressures — including higher winter demand in Europe owing to lower renewable energy output and an end to Russian gas flows via Ukraine — have increased prices, the OCE's Resources and Energy Quarterly (REQ) March report said. The OCE raised its expectations for the average LNG price for the fiscal year to 30 June by 10pc ( see table ), while increasing its forecast for the following year by 14pc from its previous report. Receipts predicted in 2024-25 have been forecast A$8bn ($5bn) higher to A$72bn, while 2025-26 earnings will likely reach A$66bn, up from A$60bn in December's REQ. Asian demand continues to strengthen, even with Japan and South Korean import levels likely peaking. The OCE noted LNG's growing popularity as a transport fuel in China and record-high Indian imports last year, given increased pressure on power grids. Higher prices have failed to dampen demand in southeast Asia — including Malaysia, Bangladesh, Singapore and Thailand — while Taiwan's backtracking on renewable targets, coupled with artificial intelligence (AI) and semiconductor sector growth, will increase energy demand there. Qatari and US investment in new supply will add 5pc to global export volumes in 2025, while demand witll grow by just 2.5pc, but the REQ expects this year's imports and exports will gradually balance. Greenfield projects The biggest challenge for Australian projects appears to be a lack of greenfield projects, following the expected completion of the 8mn t/yr Scarborough and 3.7mn t/yr Barossa projects in July-December 2026 and July-September 2025 respectively. The impact of these backfill operations in offsetting gradual declines at the 14.4mn t/yr North West Shelf LNG facility will have ceased by 2029-30, with exports falling by 2mn t/yr to 78mn t/yr. But oil and gas exploration spending is increasing after years of declines, the OCE said, with onshore search expenditure rising from A$190mn in July-September last year to A$285mn in October-December 2024. Offshore spending rose from A$125mn to A$178mn in the same period, indicating that higher prices are driving greater confidence. The ANEA price — the Argus assessment for spot LNG deliveries to northeast Asia — for first and second-half May were assessed at $12.96/mn Btu and $12.995/mn Btu respectively on 28 March. The ASEA price — Argus' assessment for spot LNG deliveries to southeast Asia — for the same period was $12.72/mn Btu and $12.75/mn Btu. By Tom Major Australia LNG export forecasts 2023-24 2024-25 (f) 2025-26 (f) 2026-27 (z) 2027-28 (z) 2028-29 (z) 2029-30 (z) Exports (mn t) 81 80 80 82 80 80 78 Export receipts (A$bn) 70 72 68 64 63 57 51 Mar '25 LNG export price (A$/GJ) 16.1 17.1 16.3 14.9 14.8 13.4 12.5 Dec '24 LNG export price (A$/GJ) 16.1 15.6 14.3 n/a n/a n/a n/a Export price % ± (Mar vs Dec forecasts) 0 10 14 n/a n/a n/a n/a f - forecast z - projection Source: OCE REQ Argus gas prices ($/mn Btu) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Global energy mix evolves as electricity demand surges

28/03/25

Global energy mix evolves as electricity demand surges

Climate change is becoming a bigger factor behind electrification, but cleaner energy use is slowing the growth in global emissions, writes Georgia Gratton London, 28 March (Argus) — A substantial increase in electricity demand — boosted by extreme weather — drove an overall rise in global energy demand in 2024, lifting it well above the average pace of increase in recent years, OECD energy watchdog the IEA announced this week. This led to a rise in natural gas consumption, although renewables and nuclear shouldered the majority of the increase in demand, leaving oil's share of total energy demand below 30pc for the first time. Global energy demand rose by 2.2pc in 2024 compared with 2023 — higher than the average demand increase of 1.3pc/yr between 2013 and 2023 — according to the Paris-based agency's Global Energy Review . Global electricity consumption increased faster, by 4.3pc, driven by record-high temperatures — that led to increased cooling needs — as well as growing industrial consumption, the electrification of transport and the rapid growth of power-hungry data centres needed to support the boom in artificial intelligence, the IEA says. Renewables and nuclear covered the majority of growth in electricity demand, at 80pc, while supply of gas-fired power generation "also increased steadily", the IEA says. New renewable power installations reached about 700GW in 2024 — a new high. Solar power led the pack, rising by about 550GW last year. The power generation and overall energy mix is changing, as economies shift towards electrification. The rate of increase in coal demand slowed to 1.1pc in 2024, around half the pace seen in 2023. Coal remained the single biggest source of power generation in 2024, at 35pc, but renewable power sources and nuclear together made up 41pc of total generation last year, IEA data show. Nuclear power use is expected to hit its highest ever this year, the agency says. And "growth in global oil demand slowed markedly in 2024", the IEA says, rising by 0.8pc compared with 1.9pc in 2023. A rise in electric vehicle (EV) purchases was a key contributor to the drop in oil demand for road transport, and this offset "a significant proportion" of the rise in oil consumption for aviation and petrochemicals, the IEA says. Blowing hot and coal Much of the growth in coal consumption last year was down to "intense heatwaves" — particularly in China and India, the IEA found. These "contributed more than 90pc of the total annual increase in coal consumption globally", for cooling needs. The IEA repeatedly noted the significant effect that extreme weather in 2024 had on energy systems and demand patterns. Last year was the hottest ever recorded, beating the previous record set in 2023, and for CO2 emissions, "weather effects" made up about half of the 2024 increase, the watchdog found. "Weather effects contributed about 15pc of the overall increase in global energy demand," according to the IEA. Global cooling degree days were 6pc higher on the year in 2024, and 20pc higher than the 2000-20 average. But the "continued rapid adoption of clean energy technologies" restricted the rise in energy-related CO2 emissions, which fell to 0.8pc in 2024 from 1.2pc in 2023, the IEA says. Energy-related CO2 emissions — including flaring — still hit a record high of 37.8bn t in 2024, but the rise in emissions was lower than global GDP growth. Key "clean energy technologies" — solar, wind and nuclear power, EVs and heat pumps — collectively now prevent about 2.6bn t/yr CO2 of emissions, the IEA says. But there remains an emissions divide between advanced and developing economies. "The majority of emissions growth in 2024 came from emerging and developing economies other than China," the agency says, while advanced economies such as the UK and EU cut emissions last year and continue to push ahead with decarbonisation. Global energy suppy by fuel EJ Growth ±% 2024 2023 2022 24/23 23/22 Total 648 634 622 2.2 1.8 Renewables 97 92 89 5.8 3.1 Nuclear 31 30 29 3.7 2.2 Natural gas 149 145 144 2.7 0.7 Oil 193 192 188 0.8 1.9 Coal 177 175 172 1.2 2.0 Global power generation by fuel TWh Growth ±% 2024 2023 2022 24/23 23/22 Total 31,153 29,897 29,153 4.2 2.6 Renewables 9,992 9,074 8,643 10.0 5.0 Nuclear 2,844 2,743 2,684 3.7 2.2 Natural gas 6,793 6,622 6,526 2.6 1.5 Oil 738 762 801 -3.2 -4.8 Coal 10,736 10,645 10,452 0.9 1.8 Global power generation by country TWh Growth ±% 2024 2023 2022 24/23 23/22 World 31,153 29,897 29,153 4.2 2.6 US 4,556 4,419 4,473 3.1 -1.2 EU 2,769 2,718 2,792 1.9 -2.6 China 10,205 9,564 8,947 6.7 6.9 India 2,059 1,958 1,814 5.2 7.9 Global CO2 emissions by country mn t Growth ±% 2024 2023 2022 24/23 23/22 World 37,566 37,270 36,819 0.8 1.2 US 4,546 4,567 4,717 -0.5 -3.2 EU 2,401 2,455 2,683 -2.2 -8.5 China 12,603 12,552 12,013 0.4 4.5 India 2,987 2,836 2,691 5.3 5.4 *includes industrial process emissions — IEA Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more