Asian Nations Rethink LNG Amid Supply Disruptions and Soaring Costs
AI-generated context summary requested by a Free News Reader user. Sourced via Gemini from publicly available information — no paywalled content was accessed.
You hit a paywall. Here’s the context on this topic based on publicly available information. We did not access any paywalled content. View original article.
Asian Nations Rethink LNG Amid Supply Disruptions and Soaring Costs
- Developing Asian nations are facing a collective $7 billion increase in their gas bills due to a loss of approximately one-fifth of global liquefied natural gas (LNG) supply.
- The disruption, largely attributed to the US-Iran conflict that began in late February 2026 and the subsequent closure of the Strait of Hormuz, has led to a significant surge in spot market prices for LNG.
Full Summary — powered by AI
The ongoing US-Iran conflict, which escalated in late February 2026, has severely impacted global liquefied natural gas (LNG) supplies, prompting developing Asian nations to reconsider their long-term energy strategies. The Strait of Hormuz, a critical maritime choke point through which about 20% of the world’s LNG passed, has been largely blocked by Iran since February 28, 2026, in retaliation for US and Israeli air strikes. This disruption, coupled with damage to Qatar’s LNG export facilities, has resulted in a loss of approximately one-fifth of global LNG supply.
This significant reduction in supply has forced Asian buyers into the volatile spot market, where prices have surged. For instance, Asian spot LNG prices rose above $20 per million British thermal units at the peak of the Middle East crisis. The International Energy Agency (IEA) reported that the disruption of transit via the Strait of Hormuz has reduced LNG supplies from Qatar and the UAE by over 300 million cubic meters per day since March 1, 2026.
In response to the escalating costs and supply unreliability, countries like India and Bangladesh are re-evaluating their reliance on LNG. Vietnam and the Philippines, previously anticipated as major growth markets for LNG, are now exploring alternatives such as wind and solar power with battery storage. Thailand is also prioritizing renewables and has engaged in a preliminary deal with Russia’s top LNG exporter. Malaysia’s Petroliam Nasional Bhd. plans to invest in domestic gas fields to lessen its dependence on LNG imports, while Indonesia is looking to retain more of its gas output for local use. Some countries are also reverting to coal and expanding nuclear capacity in the short term to ensure energy security.