India has fallen off prices for Russian LNG in the Asian region

March 26 2020 30

After the outbreak of the global coronavirus epidemic, India was one of the most attractive places for the supply of “blue fuel” and was precisely the buyer who set the price for LNG in Asia.

However, the start of a nationwide three-week quarantine announced by the authorities of the republic provoked a sharp drop in prices for Russian liquefied natural gas in the Asian region.

The price of 128 dollars per thousand cubic meters, which was already considered low, fell even lower - to 103 dollars.

According to the editor of ICIS LND, Ed Cox, the held daily decrease in the spot price for LNG was the largest in the last two years.

He cites the reason for this as quarantine and force majeure declared in India at the LNG terminal Mundra, which was stopped by the owners of GSPC and Adani on March 22.

In addition, Gail, which purchases LNG from Gazprom, announced force majeure in March and April. Representatives of the Indian company said they did not refuse cargo, but warned of the possibility of delays in the reception and payment of incoming volumes.

However, despite such a drawdown in LNG prices in Asia, it remains high compared to Europe, where the cost of a thousand cubic meters of natural gas fell to $ 90.

Recall that a number of rating agencies said that gas prices would remain low over the next two years, which would force top global suppliers to balance on a narrow gap between production costs and sales revenues.

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Sapsan136

+3

26 March 2020 16: 32

This means that American shale gas companies can make hara-kiri. Their profitability has long been left behind ....
1. 123
  
  0
  
  26 March 2020 16: 51
  
  And not just them. Only the strongest will survive. Many who imagine themselves masters of the world will go down in history.
  1. Observer2014
    
    0
    
    26 March 2020 21: 35
    
    Quote: 123
    And not just them. Only the strongest will survive. Many who imagine themselves masters of the world will go down in history.
    
    You are right oracle. Will the volcano explode in the end or not?
    1. 123
      
      +1
      
      26 March 2020 21: 40
      
      You are right oracle. Will the volcano explode in the end or not?
      
      If only mud. And about the oracle, this, of course, is ridiculous, but the prediction does not cancel. Who knows, maybe soon many countries will return to traditional handicrafts, for example, camel breeding.
      1. Observer2014
        
        0
        
        26 March 2020 21: 53
        
        Quote: 123
        You are right oracle. Will the volcano explode in the end or not?
        
        If only mud. And about the oracle, this, of course, is ridiculous, but the prediction does not cancel. Who knows, maybe soon many countries will return to traditional handicrafts, for example, camel breeding.
        
        Perhaps they will return. About thirty years later. Not, earlier. And then in the form of a hobby. They accumulate their loved ones to spend.
        
        123
        
        +1
        
        27 March 2020 11: 14
        
        Perhaps they will return. About thirty years later. Not earlier. And then in the form of a hobby. They accumulate their loved ones to spend.
        
        30 years by historical standards is nothing. The world is changeable. If you were told the news today 30 years ago, what would you think? In the usual 1990.
        And their hobby is useful, in which case, it will help to survive, however, their skills are lost, Hindus and Pakistanis have long been growing camels.
2. Ivan Ivanov_18
  
  0
  
  26 March 2020 17: 59
  
  The hegemon's dream of becoming a world gas station will not come true. Sadness.
3. Tourist
  
  +2
  
  26 March 2020 21: 41
  
  As I understand it, a significant part of oil shale production in the USA is hedged (sold) at 50+ dollars per barrel until the fall. So the changes will be at the end of the year.
4. Vladlen Kotomkin
  
  +1
  
  26 March 2020 23: 59
  
  It would be nice not to repeat the nonsense heard on TV and see that gas in the US is a by-product of shale oil production ... there are so many and so cheap that in 2018 there was a precedent when the company paid 25 cents per cubic meter, if only they took him away and didn’t have to burn him ..
  PAYING to the consumer, wretched! ..
  1. King3214
    
    +1
    
    27 March 2020 09: 17
    
    You will probably be shocked when you learn that the same "by-product" gas in Russia has simply been burned at the production site for the past 100 years. And only recently they began to collect it. Himself at a loss.
5. Natan bruk
  
  -1
  
  27 March 2020 01: 20
  
  Most of them are insured. This is the first. Secondly, they recover very quickly. And thirdly, more precisely - that is, firstly, even if all US gas companies close, nothing terrible will happen to the US economy, since it is NOT built on oil and gas, unlike the Russian economy. What will be a nuisance for the USA will be a disaster for the Russian Federation.
Sergey Latyshev

+2

26 March 2020 20: 10

Alas. Everything is completely wrong. Remember, before the news was that America would legislatively seal and print reserves. Either cans, then cans?
So it is now. It has become cheaper - they will preserve their wells and begin to fill storage facilities. I remember that with EBN, oil was always 20 bucks, and only for GDP it was raised first to 100, and then steadily 50-60 bucks.

And nothing, they didn’t grieve even at 20 ...
1. 123
  
  +3
  
  26 March 2020 21: 46
  
  Alas. Everything is completely wrong. Remember, before the news was that America would legislatively seal and print reserves. Either cans, then cans?
  So it is now. It has become cheaper - they will preserve their wells and begin to fill storage facilities.
  
  The problem is that there is not a lot of space in the reserves, for a maximum of six months, and if not fill it in a "Stakhanovian" way. Then pour only into buckets and bottles. Look at your leisure at the link:
  
  I recommend several previous issues there, all on this topic. You can relate to what has been said differently, but there is nothing to argue against the facts.
  
  I remember that with EBN, oil was always 20 bucks, and only for GDP it was raised first to 100, and then steadily 50-60 bucks.
  
  Only at EBN the default occurred, and now such disasters are not expected. The world is changing.
  1. Sergey Latyshev
    
    -2
    
    27 March 2020 01: 53
    
    1) Well, in six months we’ll see ... Although what for? Just to see what USAA did at 20 bucks a barrel in 1990-2000 ... now it’s 26,79 ...
    2) Default - yes, thank God, is not expected ....
    whatever it is, course: 77,40 .... either up or down .....
    1. Sergey Latyshev
      
      -2
      
      27 March 2020 02: 18
      
      3) Thank you, I look. What a name, as previously discussed with you ...
      "How ours bent the oil-Arabs" - literally, of course ...
      1. 123
        
        +1
        
        27 March 2020 11: 20
        
        Thanks, look. What a name, as previously discussed with you ...
        "How ours bent the oil-Arabs" is not a word, of course ..
        
        The main thing is not the name, the man sensibly argues, and the conclusions are usually supported by real facts. You can, of course, disagree with him, but the facts are difficult to refute.
        
        Sergey Latyshev
        
        -2
        
        27 March 2020 11: 59
        
        It seems to be confirmed so far. China bought something and a half lemons there, while the tankers have risen sharply in price and are massively turning to the Saudis.
    2. 123
      
      +1
      
      27 March 2020 11: 18
      
      Well, in six months we’ll see ... Although what for? Just to see what USAA did at 20 bucks a barrel in 1990-2000 ... now it's 26,79 ...
      
      At the same time, look at how much oil they produced at that time, and it is not harmful to compare the general picture of the state of the economy.
      
      Default yes, thank God, is not expected ....
      whatever it is, course: 77,40 .... either up or down .....
      
      That is, that is, and, most likely, will still be down.
      1. Sergey Latyshev
        
        -1
        
        27 March 2020 12: 09
        
        I looked. Americans specifically kept it cheaper, quickly dropped it after wars, etc.
        Themselves reduced production from 86 to 2007, and from 2014.
        Cheap oil, cheap gasoline and electricity, cool!
        
        Conclusion: they will jump for joy that gasoline will fall in price amid the crisis, etc.
        
        123
        
        +1
        
        27 March 2020 14: 37
        
        I looked. The Americans specially kept it cheaper, quickly dropped it after the wars, etc. Themselves reduced production from 86 to 2007, and from 2014.
        Cheap oil - cheap gasoline and electricity, cool!
        
        Now they are not keeping a low price. Cheap gasoline is, of course, yes, electricity is not sure. It was produced from associated gas, which, in fact, made its production cheap. No oil production - no gas, no gas - no cheap electricity.
        
        Conclusion: they will jump for joy that gasoline will fall in price amid the crisis, etc.
        
        Well, let them jump, some here in the neighborhood have been doing this for a long time. True, not everyone will ride. Or did Trump, by his own stupidity, decide to buy oil from the shales?
        
        Sergey Latyshev
        
        -1
        
        27 March 2020 15: 36
        
        Now they are not. There are their showdowns.
        But all, all consumers joyfully rub their hands .... and have already begun to buy ...
        
        Trump has his own troubles. Do not know. But from the age of 14 there was a gradual reduction in price, not fools, they knew what was going on ...
        
        It has always been in the media: OPEC is trying to maintain oil prices, limit production, and USAA - to reduce ..
        
        123
        
        +1
        
        27 March 2020 16: 17
        
        Now they are not. There are their showdowns.
        But all, all consumers joyfully rub their hands .... and have already begun to buy ...
        
        What to buy up? Petrol? Bottled up? For life you will not stock up.
        
        Trump has his own troubles. Do not know. But from the age of 14 there was a gradual reduction in price, not fools, they knew what was going on ..
        
        They have nothing to do with cheaper, what did they know? Is this Trump's plan or something?
        
        It has always been in the media: OPEC is trying to maintain oil prices, limit production, USAA - to reduce ..
        
        They have not started exporting it yet. If they are satisfied with everything and the low price is only a joy to them, why is the squeal worth it? They ask Russia to impose sanctions, Arabs are asked to limit production.
        
        Sergey Latyshev
        
        -2
        
        27 March 2020 17: 23
        
        1) You are confusing India and China with bottles))). Definitely!
        2) They have, they do not, but the price of Custody was shot down even before Trump ... According to the media, they constantly shot down.
        3) And what not to export surpluses if a) is expensive b) politics?
        Fools are dumb everywhere. And they export, and we barely - they drove our gas straight to America (and not only gas). At least 3 times pop up ...
        
        123
        
        +3
        
        27 March 2020 19: 24
        
        1) You are confusing India and China with bottles))). Definitely!
        
        Mixed up? And then what are they buying up and where are they being stored?
        
        2) They have, they do not, but the price of Custody was shot down even before Trump ... According to the media, they constantly shot down.
        
        OPEC + limited production, as a result of which the fall in prices was restrained, which made it possible for the more expensive shale oil to occupy the market. How can a more expensive product bring down prices?
        
        3) And what not to export surpluses if a) is expensive b) politics?
        
        Everything is somewhat more complicated, this is not a surplus. There are different types of oil, the American one is lighter, oil refineries are not designed for its refining; moreover, diesel fuel and bat are made from other varieties. To do this, we need Venezuelan oil or Russian.
        
        Fools are dumb everywhere. And they export, and we barely - they drove our gas straight to America (and not only gas). At least 3 times pop up ...
        
        It's a secret? Yes, they sold them both oil and gas. Just what does this have to do with this topic?
        
        Sergey Latyshev
        
        0
        
        28 March 2020 08: 13
        
        1) They wrote, they are buying up and concluding contracts. And where to store - it is to them, to them. And you can find out about bottles from them ...
        2) Ward sought to keep the price 10 bucks below the total cost of shale. So that it does not develop, and your wallet does not suffer much. Attempts to bust shale workers by lowering prices have failed. They just took a break. And the Americans happily stopped their oil fields at this time. And they bought more of a stranger. They wrote about this repeatedly.
        3) So the Americans exported their gas. We are talking about them. More attentively.
        4) About that and speech. Money doesn't smell.
        
        123
        
        +2
        
        28 March 2020 09: 39
        
        1) They wrote, they are buying up and concluding contracts. And where to store - it is to them, to them. And you can find out about bottles from them ...
        
        Modern gasoline is not stored for a long time, for a maximum of six months, the old was leaded, the one, it seems, is longer, but much more toxic. It is for this reason that the Saudis reduced the volume of oil refining, demand in Europe fell, and you can’t work at the warehouse.
        
        2) Ward sought to keep the price 10 bucks below the total cost of shale. So that it does not develop, and your wallet does not suffer much.
        
        The cost of shale is approximately 30-40 dollars. OPEC held 20-30?
        
        Attempts to bust shale workers by lowering prices have failed. They just took a break.
        
        In my opinion, their break begins again. Not too often smoke breaks suit?
        
        And the Americans happily stopped their oil fields at this time. And they bought more of a stranger. They wrote about this repeatedly.
        
        And now why are they not happy? Are you tired of smiling?
        
        3) So the Americans exported their gas. We are talking about them. More attentively.
        
        Come on, Seriously talking about American gas exports? No shale oil - no associated gas - no gas - no export.
        
        4) About that and speech. Money doesn't smell.
        
        I repeat, what does this have to do with this topic?
        
        Sergey Latyshev
        
        -1
        
        28 March 2020 10: 00
        
        1) Specially distort. Not Europe, China and India. And not gasoline in bottles, but oil / gas in storage.
        2) Have you come up with yourself? Everywhere met 50-60. Including, in the detailed explanations of the pros.
        3) You yourself know why. Not to smiles. But, most likely, they will buy it.
        4) So, our media are brazenly lying that USA has quietly exported its gas and is pushing it to Europe ???? Ayayayay, here you have convicted them of many years of lies!
        Or about the present distorted?
        
        123
        
        +2
        
        28 March 2020 12: 05
        
        1) Specially distort. Not Europe, China and India. And not gasoline in bottles, but oil / gas in storage.
        
        I repeat again, the storage will last for a maximum of 6 months, if you swing slowly. That's all. They are almost full. Further only tankers, but then nothing to carry and bottles.
        
        2) Have you come up with yourself? Everywhere met 50-60. Including, in the detailed explanations of the pros.
        
        My imagination is not so rich. He took the average prices for the industry, they are very different, but on average somewhere around 30-40, there are others:
        
        Chinese hedge fund Shanghai Youlin Investment Management: WTI will fall below the cost of shale oil production in the US, which is about $ 20 per barrel, oil can reach $ 15 per barrel per month.
        
        https://neftegaz.ru/news/finance/537217-novaya-strashilka-ot-bloomberg-tseny-na-neft-upadut-do-5-doll-ssha-barr/
        
        About $ 20. True, this is excluding delivery.
        
        3) You yourself know why. Not to smiles.
        
        They stopped smiling when "you know what" was not particularly ferocious. Then they talked more about the "unsanitary" Chinese who eat bats.
        
        But, most likely, they will buy
        
        We return to paragraph 1) Bottles. We take a loan, we pump oil from the earth onto it and for the money of the state we fill it into another hole in the ground. This is such a business.
        
        So, our media is brazenly lying that USA has quietly exported its gas and is pushing it to Europe ????
        
        Since when did you start to believe our media? Once again I repeat, they pump oil, with it there is associated gas. No oil - no gas. If no one buys it, then they burn it. At one time, apparently, for environmental reasons, they even paid extra to take the gas. In the USSR and the 90s, we had a lot of torches here, it was clearly visible from the plane how the associated gas was burned. Now it is very rare.
        
        Sergey Latyshev
        
        -1
        
        28 March 2020 16: 23
        
        So, you have other sources about everything literally.
        About the cost of shale gas at 20 !!!! I haven’t seen any bucks in the USA.
King3214

+3

27 March 2020 09: 13

Time to work at a loss.
If we abandon the existing market share due to the low price, this means losing our share. After all, the price will certainly rise, but there will be no market share anymore.