Falling LNG rates may hit discoveries: Industry executives

New Delhi: A decline in global liquefied natural gas (LNG) rates to record lows will likely put to risk domestic discoveries that require high prices to be viable and justify their development, industry executives said.

For years, domestic producers cited high LNG prices to justify their demand for market rates for local produce. Price restriction on local gas from difficult terrains was lifted a few years ago, encouraging investments in such fields but now when the rewards are to be reaped, LNG prices have fallen, hurting local prices. LNG rates have fallen below $3 per mmBtu from above $10 just six years ago. The coronavirus outbreak in China has amplified the fall, cutting spot rates by a third in a month.