Indian LNG Buyers Seize Rare Opportunity as Prices Plunge
Indian LNG buyers are seizing a rare opportunity to boost imports, with Asian prices of the gold price plunging to their lowest level since May 2024. This could potentially reverse the declining deliveries to India, which have dropped by approximately 9% so far this year.
The recent drop in spot prices has encouraged Indian Oil Corp. to release a tender for LNG supply, with delivery expected between late October and early November. This move follows a similar offer made to an undisclosed shipping company involved in LNG transport from the APLNG export project in mid-October.
Buyers are taking advantage of the low prices, which are currently trading around the low-$10 per million British thermal units range. They are refilling storage and meeting the rising demand from fertilizer producers. Gujarat State Petroleum Corp. and GAIL India Ltd. are also expected to follow suit with their own tenders.
The surge in buying could indeed reverse the declining deliveries to India. With Asian LNG prices at their lowest since May 2024, Indian importers are seizing this opportunity to secure supplies at favorable terms.
