INSUBCONTINENT EXCLUSIVE:
northwest Europe, industry sources said on Wednesday.The sale of a cargo already on the water is the latest example of an oversupplied LNG
market that has resulted in Asian spot LNG prices falling to an almost three-year low of around $4.30 per million British thermal units
(mmBtu) this week.It also signals that India's LNG demand, considered substantial compared to northeast Asia, is weaker than expected.Europe
has become a top destination this year for cargoes that cannot find a home in Asia because of high stock levels and low delivery prices.The
cargo on board of the Meridian Spirit that loaded at the US Cove Point plant on March 20 was offered in a tender on March 25 when it was
crossing the Atlantic Ocean.It was sold at about $4.30 per mmBtu, three industry sources said
The cargo will be delivered to Belgium's Zeebrugge terminal, one of them added.The vessel turned to northwest Europe on March 26 when the
tender was closed, Refinitiv Eikon data showed.There is a tank top situation at India's west coast terminals, meaning the storage facilities
were full, the industry source said, adding that this had led to the cargo being sold to a European destination
Prices in the country are at a slight discount to those in northeast Asia
But sources said that, even if the prices were going down further, it did not mean that India would be able to buy significantly more
LNG.Gail has 20-year deals to buy 5.8 million tonnes a year of US LNG, split between Dominion Energy's Cove Point plant and Cheniere
Energy's Sabine Pass site.The Meridian Spirit is expected to be used by Gail to load a new cargo in the US Gulf in mid-May.There are at
least two tenders from other India's companies, trade sources said
Indian Oil Corp (IOC) is looking to buy a mid-May delivery cargo
Petronet is looking for three cargoes for delivery between July and December.Regasification capacity has constrained LNG imports in India in
recent years.India has four terminals receiving LNG on the west coast
India's first east coast terminal in Ennore was commissioned by IOC this month
Two more terminals, GSPC's Mundra and H Energ's Jaigarh, are expected to start up this year.Get the latest election news, live updates and
election schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections
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