Asian LNG Prices Soar Amid Middle East Disruption

The ongoing US-Iran conflict has disrupted liquefied natural gas (LNG) flows from Qatar and the United Arab Emirates, causing a shortage in major Asian markets. According to Cederic Cremers, President of Integrated Gas at Shell, the global market has lost around 36 million tonnes of LNG from the Middle East so far this year.

The disruption has pushed Asian spot LNG prices sharply higher, reaching nearly $30 per million British thermal units (MMBtu) compared with pre-war levels of around $10/MMBtu. This increase in price is affecting consumption in India, where industries and other gas users remain sensitive to fuel costs.

GAIL Chairman Deepak Gupta said that elevated LNG prices were 'definitely impacting' demand, particularly in sectors where switching to alternative fuels is economically viable. Pakistan's LNG market could also see a revival if prices decline and additional supplies become available.