Asian LNG Demand Slumps Amid Price Surge
Asian demand for liquefied natural gas (LNG) is expected to fall again in 2026, marking the second consecutive annual drop in the region's consumption. The projected contraction of 3% to 10% is driven by elevated prices, which have surged following a force majeure declared by QatarEnergy on its exports.
The global LNG price has climbed sharply, reaching $26 per million British thermal units in the week ending September 11, up from $10.40 per million British thermal units in February before the strikes on Iran.
According to analysts at Rystad Energy and Kpler, much of the demand reduction is concentrated in Northeast Asia, where countries have access to coal and some nuclear capacity. This has allowed these economies to lower their LNG consumption depending on each country's power mix.