India grapples with LNG oversupply after deadly virus dashes demand
India’s liquefied natural gas importers are asking suppliers to defer deliveries as measures to curb the spread of the deadly Covid-19 virus have cut demand for the fuel. At least three companies, including Indian Oil Corp., have asked to delay shipments slated for May and June delivery, according to traders with knowledge of the matter, who requested anonymity as the discussions are private. Inventories at import terminals in western India, such as Dahej, are near full capacity, the traders said. The deferrals illustrate the extent of the natural gas glut in India, which has worsened over the past several weeks. While Indian firms have been accepting most contracted LNG deliveries, they have disappeared from the spot market since the virus worsened last month and shipments became too pricey. To make matters worse for suppliers, a cyclone in the vicinity of several import terminals in western India has also forced diversions and rearranged delivery schedules, said traders. More deferral from India could result in an oversupply of prompt cargoes in the spot market, which will weigh on prices that have rallied to the highest seasonal level in seven years.
Cairn’s Air India lawsuit may not delay selloff plan
Cairn Energy’s move to sue Air India (AI) in a US court to force recovery of the $1.2-billion international arbitration award it won is unlikely to have any impact on the privatisation of the state-run airline, a top government official said on Monday, asserting that all efforts were being made to stick to the deadline of inviting financial bids by September. “As such there is no impact on Air India privatisation. The government of India is defending the case and we are confident that it will have no impact on the disinvestment process,” the department of investment and public asset management (Dipam) official, who did not wish to be named, told TOI. The assessment in the government is that Cairn is seeking to put pressure on the Centre to withdraw the review of the arbitration panel award. Although the government has alerted public sector companies that it is not unduly worried, sources indicated. On privatisation, the Dipam official acknowledged that there has been some delay in the strategic sales due to the pandemic, which had hurt physical meetings. “We had thought of winding up some transactions in the first quarter of this year but now two months have been affected due to the pandemic so that timeline is impacted,” the official said, adding that due diligence for Air India and BPCL sales were on. Both are in advanced stage of their eventual privatisation.