GAIL (India) Ltd has reportedly sold one liquefied natural gas (LNG) cargo this week due to the full capacity of its storage tanks, combined with a noticeable decline in power demand across the country. According to multiple market sources, this decision comes as cooler weather associated with the early arrival of the monsoon season has dampened electricity consumption in India. As the largest gas distributor in the country, GAIL’s reduced LNG imports may signal a shift in India’s overall demand for this super-chilled fuel. India ranks as the world’s fourth largest LNG importer, with approximately 26 million metric tons purchased last year, largely driven by rapid urbanization, industrialization, and increasing power requirements.
However, the full tanks at GAIL’s facilities prompted the company to sell off excess cargo, as power consumption dropped significantly. While GAIL has not commented on which specific cargo was sold, ship-tracking data indicates that two LNG vessels managed by the company have diverted from their planned routes. The LNG tanker Gail Urja, previously heading to the Dahej terminal in India, made a U-turn and is now bound for the Gate LNG terminal in the Netherlands. This vessel had loaded its LNG at Cove Point, Maryland, in late May.
Another tanker, Grace Emilia, has experienced multiple course changes around the Reunion Island and Mauritius since early June, with current indications pointing toward Asia. The situation follows forecasts from India’s weather office predicting above-average monsoon conditions, which have succeeded in lowering temperatures and reducing electricity usage. Consequently, power generation from natural gas sources has dipped sharply, marking the most significant decrease in nearly three years.