Spot LNG at record high: LNG supplies to India crash – 13 Jan 2021

The line-up of LNG vessels coming into India suddenly looks far shorter than before.

Why is that so?

It is quite possible that spot cargoes have completely dried up, now that spot rates are at $20/mmbtu.

And only term cargoes, at crude linked or Henry Hub linked pricing, are coming in.

According to studies made, Indian appetite for absorbing incremental gas at large enough volumes is at a price range of around $6-7/mmbtu, beyond that point, its appetite wanes.

At $20/mmbtu JKM price, there will be zero buyers for gas.

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