A combination of the coronavirus quarantine restrictions and a falling market is sparking talk of diversions, delays and disputes about LNG cargoes destined for China.

On Friday, data intelligence analyst Kpler identified at least five LNG carriers which it said have either been diverted from Chinese ports or which are holding off the country’s coastline with cargoes on board.

Brokers said they believe at least one of the vessels, the 155,641-cbm Tangguh Foja (built 2008), which ships cargoes from Indonesia to China, was diverted to Singapore.

Several Qatari-controlled vessels are detailed as waiting off China.

But another of the LNG carriers listed is not due to discharge until Sunday and is not expected to be delayed, according to its owner’s interests.

On a plus note, brokers said Australian energy company Woodside has emerged with a requirement for an LNG carrier to take on spot charter. They expect this ship to be cover for LNG vessels quarantined off Australia.

LNG carrier rates have come under increasing pressure in the last few weeks before the coronavirus hit, on the back of a warmer-than-expected winter season, lower economic demand complicated by falling gas prices, and brokers report another quiet week for fixtures.

Demand for LNG in Asia, where China is one of the biggest buyers of the commodity, was also falling pre-virus but the concerns about the economic fallout from the outbreak are resonating through the LNG market.

Brokers pointed out that large volumes of LNG are moved by truck within China which could further depress demand as personnel movements come under fresh limitations in an effort to limit the coronavirus spread.

Consultant Rystad Energy said China’s LNG imports for January fell by 10% year-on-year.

Rystad said it has revised its growth estimate for Chinese LNG demand this year to 4.7%, down from a previous forecast of a 10-13% rise for this year.

“Given the strictest lockdowns of cities and factories, the Chinese government is trying by all means to end the outbreak as quickly as possible, so we see a speedy economic recovery later this year and a return to growth in LNG imports. However, the growth rate is expected to be much lower than previously predicted, mainly due to the industrial sector,” Rystad vice president for gas and power markets Xi Nan said.

Xi described China’s largest gas consumer China National Offshore Oil Corp as “undergoing a heavy hit.”

Bloomberg reported on Friday that energy majors Total and Shell had rejected force majeure claims by CNOOC. This would mean the majors would likely claim compensation if CNOOC cancelled its contracted shipments.

LNG industry players pointed out that the Asia spot price for LNG has fallen to a record $3 per MMBtu, which is well below prices in the range of $9 per MMBtu which Chinese buyers are locked in to pay under their long-term LNG sale and purchase contracts.

“As the spread of the coronavirus does not yet appear to be slowing down, concerns are rising among LNG sellers,” Rystad said. “If more Chinese companies cancel or defer importing LNG volumes from term contracts, and if the spot price then falls further, sellers may face even greater pressure from buyers wanting to renegotiate existing contracts or hesitating to sign new ones.”

Rystad said China has contracts in place to buy 50 million tonnes per annum (tpa) of LNG from Australia, Qatar, Malaysia, Indonesia, Russia, Papua New Guinea, the US and portfolio players, and would likely need to buy another 12 million tpa this year.