LNG Demand in China and India Could Surge When Prices Normalize

LNG demand in China and India is anticipated to surge once prices normalize following the end of the Middle East conflict, according to industry executives. The war in Iran and closure of the Strait of Hormuz have disrupted LNG supply from Qatar and the United Arab Emirates, leading to depressed demand. However, as the war concludes and prices return to normal levels, consumption in these key Asian gas import markets is expected to rebound.

Deepak Gupta, chairman of India's top gas distributor, GAIL, stated at the Gastech conference in Bangkok that price sensitivity is impacting demand in India. PetroChina, the largest LNG importer in China, also attributes its current lower purchases to soaring prices. While the company remains confident that demand will rebound once prices fall below $10 per million British thermal units, Chinese demand growth may not be as rapid as before Russia's invasion of Ukraine.

The group emphasizes cost, reliability, and flexibility when securing energy, and the country is actively building out its energy infrastructure with these factors in mind.