Asian Nations Sour on LNG Amid War-Driven Shortage

The ongoing US-Iran war has led to a shortage of liquefied natural gas (LNG) supply, causing costs to skyrocket for developing Asian nations. Since February, Qatari shipments of LNG through the Strait of Hormuz have dwindled, depriving Asian buyers of contracted supply and forcing them into the spot market where prices are surging.

Major non-China emerging-market Asian buyers, India, Pakistan, Bangladesh, Thailand, and Vietnam, have collectively spent $7.4 billion on spot LNG since the start of the war, with another $3.1 billion spent under long-term contracts over the same period in 2025. This represents a more than doubling of costs.

This has led to a reevaluation of LNG's future in the region. Many countries are now looking for ways to wean themselves off LNG and transition to alternative energy sources such as solar, wind, coal, nuclear, or locally produced gas or piped supply.