
On January 19th, the Indian Foreign Secretary announced that a long-term agreement has been signed with the United Arab Emirates to supply 500,000 tons of LNG annually.
India and the United Arab Emirates have signed a long-term supply agreement for 500,000 tons of LNG per year, increasing global market supply and potentially leading to oversupply pressure, which could have a downward impact on LNG spot prices. An increase in supply usually suppresses prices, especially considering the capacity enhancement of the UAE as a major exporting country. Although the scale of the agreement is not huge, it may intensify market competition.
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