LNG: Indian LNG Demand to Shift to Long-Term Contracts: Platts
Indian demand for LNG cargoes in the spot market is expected to slow over the next two years as procurement shifts to medium and long-term contracts, Platts said.
- This shift may be poorly timed, as new supply could lower spot prices, making contracted LNG more expensive.
- Nearly 6m mtpa of new long-term contracts will start over the next two years, cutting India's spot demand.
- These contracts are cheaper than current spot prices but may become more expensive when spot prices fall from 2027 onward, Platts added.
- India's unique downstream LNG demand profile includes industries like fertiliser production, transport, and power generation.
- There is a risk that LNG buyers are overcommitting to long-term contracts without securing downstream customers, which could impact refining margins.
- Price mismatch risks exist due to non-LNG pricing indexations, and past experiences show potential for price disputes if spot prices fall below term contract prices.
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SLOVAKIA: Fico To Meet w/Commission Thurs Amid Mounting Political Pressure
Reuters reports that Prime Minister Robert Fico will meet with European Commission officials in Brussels on Thursday 30 Jan to discuss the issue of gas transit into and through Slovakia. The meeting comes as Fico remains under significant political pressure following the gov't effectively losing its majority in the National Council and mass protests in cities across the country demanding the gov't revert back towards a pro-EU and NATO stance.
- Slovakia has threatened Ukraine with cutting assistance to refugees following Kyiv's halting of Russian gas supplies to Europe via its pipeline network since the start of 2025. The European Commission is continuing talks with Ukraine over the issue, with Slovakia and Hungary to be included in discussions. There is speculation that 'Azeri' gas could be piped to Slovakia as part of an agreement backed by Ukraine.
- While engaging with the EU on gas supplies, Fico is in a vulnerable position domestically. Following the expulsion of two deputies from the centre-left Hlas-SD party, which sits in the governing coalition, the gov't only holds 72 seats in the 150-member legislature. Controversial plans to amend the constitution, including provisions that would look to limit the primacy of EU law over Slovak law, have seen the protest movement's numbers swell.
- Fico has sought to downplay the scale of opposition, claiming that he is "not interested in political races, but only in the outcome.” Without some compromise with opposition deputies his gov't will remain at risk from confidence motions going forward.
