LNG Demand Set to Rebound as Middle East Supply Crunch Eases

Liquefied natural gas (LNG) demand from China, India, and Pakistan is expected to rebound as Middle East supply crunch ends and new supplies emerge.

The conflict in the region has prevented Qatar and the UAE from exporting most of their LNG via the Strait of Hormuz, driving up prices.

Shell estimates that the world has lost about 36 million tonnes of LNG from the Middle East so far this year, with Asia's spot prices surging to nearly $30 per million British thermal units from a pre-war range around $10 per MMBtu.

GAIL Chairman Deepak Gupta said high prices are 'definitely impacting' demand in India, where many industries switch over to different fuels if gas is not viable.

Petronet LNG CEO Akshay Kumar Singh also expects consumers to seek price stability, while Pakistan LNG's Masood Nabi believes demand could increase with additional volumes coming online.