According to Reuters, Gail has sold and redirected a US-produced LNG cargo, due for delivery to India, to northwest Europe.
Experts suggest that this sale of a cargo in the process of shipping is the latest sign of the oversupplied market in Asia. It also demonstrates that India’s LNG demand, once considered substantial compared to the rest of the region’s LNG buyers, is weaker than estimated. It would appear that the Indian LNG market is becoming saturated in a fashion comparable to that of its neighbours’.
Europe is increasingly becoming a home for cargoes purchased by Asian companies but then re-directed in response to high stock levels, oversupply and declining delivery prices.
