New Delhi: Indian gas importers are sharply cutting spot market purchases, diverting already-purchased liquefied natural gas (LNG) cargoes, and rescheduling even some long-term deliveries as Covid-linked lockdowns hit demand and prices stay high in the spot market.
Domestic gas demand has dropped 7% in April over March while LNG imports have dropped 11%. The demand has shrunk further in May with lockdowns becoming stricter and extending to more states. The city gas segment has been hit the hardest with compressed natural gas (CNG)-driven vehicles staying off the road and small factories shut. With refined fuel demand dropping nearly 10% month-on-month in April, refiners have cut their runs, contributing to a reduction in domestic gas demand.
