$7 Billion Gas Bill Spurs Asia's LNG Rethink Amid Iran Conflict
Developing Asian nations are rethinking their reliance on liquefied natural gas (LNG) after a $7 billion increase in costs due to supply disruptions from the US-Iran war. The conflict, which began at the end of February, has halted Qatari shipments of LNG through the Strait of Hormuz, depriving Asian buyers of contracted supply and forcing them into the spot market.
Prices have surged on the spot market, leaving many struggling to afford the fuel for power stations and industries. The loss of a fifth of global LNG supply is expected to continue until tensions ease between the US and Iran.
The shortage has left Asian nations such as Vietnam and Indonesia facing higher costs, with some turning to alternative energy sources or renegotiating contracts with suppliers. While the long-term impact on LNG demand in Asia remains unclear, many experts predict a permanent shift away from this fuel source.