Asian Spot Prices Soar as Middle East LNG Supply Crunch Continues

The US-Iran war has disrupted LNG supplies from Qatar and the UAE, causing Asian spot prices to rise to nearly $30 per million British thermal units (MMBtu), up from around $10 before the conflict.

This sharp increase in prices has affected gas demand in India, particularly among industries sensitive to fuel costs. Some businesses have switched to other fuels when natural gas became less viable.

GAIL and PetroChina have deployed trading teams to find alternative LNG cargoes to replace supplies from Qatar and the UAE. Shell estimates that around 36 million tonnes of LNG from the Middle East have been lost so far this year.

Industry executives expect LNG consumption in China, India, and Pakistan to recover once prices fall and supply conditions improve. GAIL Chairman Deepak Gupta expects around 150-200 million tonnes of LNG to come online over the next four to five years.