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Brent Spot Price

Brent crude oil spot prices averaged US$43/barrel in Jul’20, US$3/barrel higher from the average in June and up US$25/barrel from the multiyear low monthly average price in Apr’20. EIA forecasts the prices to average US$43/barrel during H2 2020 and rise to US$50/barrel in 2021.

Henry Hub Spot Price

Henry Hub Natural Gas spot price averaged US$1.77/MMBtu in Jul’20. EIA expects prices to rise from US$2.11/MMBtu in Sep’20 to US$3.14/MMBtu in Feb’21.

LNG continues to be significantly cheaper than other alternative fuels. The average LNG spot DES prices has remained below US$5/MMBtu since Mar’20.

Both term and spot LNG prices continues to trend lower. Term prices were lower due to the crash in oil prices during Apr’20-May’20.

The price of domestic Natural Gas has been reduced by 26% to US$ 2.39/MMBtu for Apr-Sep 2020 period. Price ceiling for gas produced deep water, ultra-deep water, and high pressure-high temperature areas has been reduced by 33.5% to US$5.61/MMBtu.

All terminals except Dabhol received LNG cargoes in Jul’20. Dahej and Hazira accounted for 67% and 19% of the total imports during the month.

LNG imports have recovered to pre-covid levels. The M-o-M LNG imports jumped by 21% in Jul’20. Spot LNG continues to be preferred by customers and have accounted for 58% of the total imports during the month.

Fertilizer and power sector accounted for 55% of the total net consumption of Natural Gas in Jul’20. CGD was the most impacted, its share has declined to 12% in Jul’20 as compared to 19% share in Feb’20.

Domestic supply was down 10% Y-o-Y while RLNG supply was up 6% Y-o-Y in Jul’20. The share of LNG imports in total consumption was 56% during the month.

The price of domestic Natural Gas has been reduced by 26% to US$ 2.39/MMBtu for Apr-Sep 2020 period. Price ceiling for gas produced deep water, ultra-deep water, and high pressure-high temperature areas has been reduced by 33.5% to US$5.61/MMBtu.

Spot LNG prices were 48% and 58% cheaper than FO and LPG respectively in Jun’20. Spot LNG is expected to remain cheaper vis-à-vis other alternative fuels in 2020.