Middle East Conflict Crimps Liquefied Gas Demand, Prices Soar

The ongoing Middle East war has disrupted global energy flows in unprecedented ways.

Liquefied natural gas (LNG) demand is particularly affected, with some predicting a 65% increase to nearly 700 million tons annually by 2050.

However, the current conflict has slowed LNG exports from the Persian Gulf and pushed prices up significantly.

The price of LNG has doubled since January, with buyers paying $20-$22 per million British thermal units (MMBtu) for much of July.

This premium is expected to hurt demand for LNG globally, potentially leading to an 8% decrease in demand this year compared to 2025 projections.