Reuters is reporting that Chinese LNG buyers are expecting demand to be severely impacted by the coronavirus epidemic that is currently gripping the country.
So far, the virus has killed 361 people (at the time of reporting) and billions have been wiped off company values. Growth is also being threatened.
Chinese LNG demand was already suffering from a weak economy, slowed by the ongoing trade war with the US, and now the added impact of the epidemic is reportedly leading several buyers to consider delaying or cancelling further cargoes by invoking force majeure.
With regards to these reports, Reuters has stressed that nothing has been decided for certain yet, however Reuters sources have expressed concerns that gas demand will take additional hits, resulting in major delays for LNG deliveries.
Asian LNG spot prices have lately been hitting decade lows. This current situation is likely to cause further decline.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/04022020/coronavirus-epidemic-impacts-chinese-lng-demand/