Liquefied natural gas (LNG) markets across Asia have been shaken by the West Asia conflict, with spot prices surging to nearly $30 per MMBtu — triple the pre‑war level of around $10 per MMBtu. The spike has forced major buyers like India and China to cut consumption, switch fuels, and scramble for alternative cargoes. But industry executives now believe demand could rebound once geopolitical tensions ease and prices stabilise.
The conflict has disrupted shipments through the Strait of Hormuz, a critical chokepoint that previously carried about one‑fifth of global LNG supplies, including cargoes from Qatar and the UAE. With supply routes compromised, Asian buyers faced immediate shortages and soaring costs.
In India, GAIL chairman Deepak Gupta said the price surge had already hit demand, especially among industries highly sensitive to fuel costs. Many switched to cheaper alternatives when natural gas became uneconomical. GAIL initially restricted consumption after Middle Eastern supplies were disrupted but later increased trading activity, restoring 90–95% of normal supply.
Both GAIL and PetroChina International have been actively sourcing LNG from alternative suppliers to replace affected cargoes. PetroChina’s CEO Luo Yizhou said the company moved quickly to secure gas after the conflict began, highlighting the urgency faced by Asian buyers.
Executives increasingly view the decline in LNG consumption as price‑driven rather than structural. Once prices cool — which analysts expect as supply routes stabilise — India and China may return to the market more aggressively, restoring demand to pre‑war trends.