Asia's LNG Imports Plunge Amid Iran War Fallout

Asia's imports of liquefied natural gas (LNG) are expected to plummet in April, reaching their lowest level since June 2020. According to commodity analysts Kpler, Asia will import approximately 19.03 million metric tons of LNG in April, down from 20.69 million in March and a winter peak of 26.34 million in December.

The decline is largely attributed to the loss of volumes from Qatar, which supplied around 20% of global LNG before the U.S. and Israeli strikes on Iran. Asia's imports from Qatar are estimated at just 800,000 tons in April, down from an average of over 6 million tons in the three months leading up to the war.

China has been a key player in adjusting to the fallout from the Iran war, with its LNG buyers voluntarily curtailing imports. China's LNG imports are expected to reach 3.36 million tons in April, the lowest since 2018 and down from a winter peak of 7.66 million tons.

While China has been able to lower LNG imports and re-sell cargoes due to strong domestic natural gas output and pipeline supplies from Russia and Central Asia, smaller buyers like Pakistan are struggling. Pakistan's LNG imports may drop to zero in April as the last of the Qatari cargoes that exited the Strait of Hormuz prior to the war against Iran arrive at their destinations.