Asia's LNG Demand Set to Rebound as US-Iran War Eases Supply Crunch

The ongoing US-Iran war has caused a significant disruption in LNG supplies to Asia, pushing prices to nearly $30 per million British thermal units (MMBtu), up from around $10 before the conflict. The Middle East supply crunch has prevented Qatar and the United Arab Emirates from sending most of their LNG through the Strait of Hormuz, a key route for global gas supplies.

GAIL Chairman Deepak Gupta said that several sectors in India are sensitive to gas prices and can move to other fuels when LNG becomes too expensive. The high LNG prices have put pressure on demand across the country, with some businesses switching to coal and oil.

Pakistan is also expected to see higher LNG demand if prices become more affordable and additional supplies enter the market. Pakistan LNG CEO Masood Nabi said that demand could increase with new volumes becoming available.