LNG demand in China, India and Pakistan expected to rebound after US-Iran war ends
LNG demand from China, India and Pakistan is likely to rebound from multi-year lows once the Middle East supply crunch ends and new supplies emerge, industry executives say, reversing a pick-up in coa...
Demand for liquefied natural gas (LNG) in key regions such as China, India, and Pakistan is anticipated to recover following the conclusion of the US-Iran conflict, according to industry leaders. This rebound will come as new supplies enter the market and the supply crunch from the Middle East subsides. The ongoing war has hindered Qatar and the United Arab Emirates from exporting most of their LNG through the Strait of Hormuz, which previously accounted for a fifth of global LNG shipments, leading to a price surge.
Shell, the world's largest LNG trader, estimates that the world has lost approximately 36 million tons of LNG from the Middle East this year. In response, Asia's spot prices for LNG have skyrocketed to nearly $30 per million British thermal units, up from the pre-war range of around $10 per MMBtu. Affordability and price sensitivity have become major concerns for consumers, particularly in India, as highlighted by GAIL Chairman Deepak Gupta.
Both GAIL and China's PetroChina have engaged their trading teams to secure alternative cargoes to replace supplies from Qatar and the UAE. In Pakistan, demand for LNG is projected to increase if prices remain affordable, given the country's ongoing power shortages and other sectors' reliance on gas. Experts predict a significant increase in LNG production in the next few years, particularly in China, aiming to normalize LNG prices and alleviate the current demand constraints.
Written by urgent.news from Gulf Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
