Asia's LNG Imports Plummet as Qatar Cargoes Disappear

Asia's imports of liquefied natural gas (LNG) are set to drop to their lowest level in nearly six years, according to estimates from commodity analysts Kpler. In April, Asia is expected to import around 19.03 million metric tons of LNG, down from the winter peak of 26.34 million in December and a significant decrease from March's imports.

The main reason for this decline is the closure of the Strait of Hormuz, which has cut off cargo supplies from Qatar, one of Asia's largest suppliers. Prior to the Iran war, Qatar supplied around 20% of global LNG, but its exports have plummeted since February 28. In April, Asia's imports from Qatar are estimated at just 800,000 tons.

China has been a key player in adjusting to the fallout from the U.S. and Israeli attacks on Iran. The country has voluntarily reduced its LNG imports, which are set to drop to their lowest level since April 2018. China's LNG buyers have also taken advantage of the price spike in March to re-sell cargoes, with exports hitting a record high of 720,000 tons.

In contrast, other countries such as Pakistan and Bangladesh have been less successful in adjusting to the loss of Qatari cargo supplies. Pakistan's LNG imports may drop to zero in April due to its reliance on Qatar for nearly all of its LNG. Bangladesh, however, has managed to secure cargoes from other suppliers, including the United States, Australia, Oman, Nigeria, and Angola.