West Asia Conflict Disrupts Global LNG Supply
The ongoing conflict in West Asia has severely impacted the global supply of liquefied natural gas (LNG), leading to a surge in prices and curbed demand in Asia. According to Shell, the world's largest LNG trader, approximately 36 million tons of LNG have been lost from the region so far this year due to the war.
India and China, major consumers of LNG, are expected to see their imports recover once the conflict ends and prices ease. Industry executives believe that consumption will rebound as prices fall and global supply recovers.
GAIL Chairman Deepak Gupta stated that India's gas demand has been impacted by high prices, with many industries switching to alternative fuels when gas is not viable for them. GAIL and PetroChina have deployed their trading teams to scour for alternative cargoes to replace Qatari and Emirati supplies.