Asian LNG Demand Drops for Second Year on Supply Shock
Asian LNG demand is set to contract for a second consecutive year, falling an estimated 3% to 10% as Gulf supply disruptions from the US-Israeli war on Iran drive prices to multi-year highs. While Northeast Asia pivots to coal and nuclear to cut consumption, India and Bangladesh remain key sources of resilience by continuing to secure spot cargoes for essential industrial and power needs.
New data from GN auto stocks/energy-stocks: natural gas demand quantifies the contraction, projecting a 3% to 10% drop in Asian LNG consumption, driven largely by China's 6.1 mmt reduction due to industrial cuts and inventory drawdowns. Meanwhile, India and Bangladesh are bucking the trend, maintaining resilient demand through city gas, fertilizer, and baseload power sectors despite the price surge.
Source: Egypt Oil & GasSupply disruptions from the US-Israeli war on Iran have tightened the LNG market, driving prices to multi-year highs and forcing a contraction in Asian consumption.
Source: BusinessLine
