India's GSPC seeks JKM-linked LNG cargoes via tender for the first time

India's Gujarat State Petroleum Corp. has issued JKM-linked tenders for the first time to buy LNG cargoes for delivery into India from April 2027, a source with direct knowledge of the matter said Oct. 6.

This marks a departure from the fixed-price basis typically used by Indian importers.

One of the tenders seeks two cargoes for delivery in April and September 2027. It closes Oct. 12 at 3 pm IST, with bids valid for one day. The other one seeks one cargo every month from April 2027 to March 2028. It closes Oct. 13 at 3 pm India time, also with one-day validity.

GSPC did not immediately reply to a query from Platts, part of S&P Global Energy, about the tender details Oct. 7.

Sellers are required to quote a discount against the JKM monthly average corresponding to the month of cargo delivery.

Cargoes under both tenders are sized at 3.2 trillion-3.4 trillion British thermal units, each with a 5% operational tolerance, and the seller is to nominate a 10-day delivery window.

The move follows a similar step by Bharat Petroleum Corp. Ltd., which on Sept. 23 issued a spot tender to buy Nov. 21-30 delivery LNG cargo at a JKM-linked price, also for the first time. The tender was heard awarded on Sept. 24 at JKM December plus 30-35 cents/million British thermal units for a cargo from a country with a free trade agreement with India.

GSPC previously bought three spot cargoes via tender in August and two in September, all on a fixed-price basis as prices rallied from the low-$20s/MMBtu to near $29/MMBtu.

In addition, GSPC has included a clause whereby the seller would convert the contract price from floating to fixed or vice versa on the buyer's request.

Indian importers typically purchase spot cargoes on a fixed-price basis, and during previous price hikes, some were exposed to downside risks after securing a cargo. This week, Indian importers were mostly cautious in buying spot cargoes due to concentrated arrivals of Middle Eastern supply after several transits out of the Strait of Hormuz, multiple importers and traders said.