Top LNG Buyers Seek Cargo Delays as Virus Slashes Demand - Bloomberg:
The world’s top buyers of liquefied natural gas are seeking to defer shipments as the coronavirus pandemic cripples demand and forces more of the heating and power fuel into storage that is nearing capacity.
The move signals that efforts to contain the spread of the virus may impact energy consumption far into this year and possibly 2021, worsening an oversupply of natural gas and oil that’s punished prices.
Buyers in South Korea and Japan, including Korea Gas Corp. and Tokyo Gas Co., are in discussions with term suppliers to postpone cargoes slated for delivery as far out as October, according to people with knowledge of the matter. The delay requests vary from just a few days to as late as next year, said the people, who asked not to be identified as the discussions are private.
The virus has already disrupted LNG deliveries across Asia. Indian importers this week requested further delays to shipments after the government extended a nationwide lockdown until May 3. Meanwhile, several buyers in North Asia have exercised so-called “downward quantity tolerance” clauses in their long-term contracts, which allow them to take up to 10% less volume than originally agreed. Earlier t
The world’s top buyers of liquefied natural gas are seeking to defer shipments as the coronavirus pandemic cripples demand and forces more of the heating and power fuel into storage that is nearing capacity.
The move signals that efforts to contain the spread of the virus may impact energy consumption far into this year and possibly 2021, worsening an oversupply of natural gas and oil that’s punished prices.
Buyers in South Korea and Japan, including Korea Gas Corp. and Tokyo Gas Co., are in discussions with term suppliers to postpone cargoes slated for delivery as far out as October, according to people with knowledge of the matter. The delay requests vary from just a few days to as late as next year, said the people, who asked not to be identified as the discussions are private.
The virus has already disrupted LNG deliveries across Asia. Indian importers this week requested further delays to shipments after the government extended a nationwide lockdown until May 3. Meanwhile, several buyers in North Asia have exercised so-called “downward quantity tolerance” clauses in their long-term contracts, which allow them to take up to 10% less volume than originally agreed. Earlier t
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