LNG Demand in India, China and Pakistan May Rebound as Prices Ease

LNG Demand in India, China and Pakistan May Rebound as Prices Ease

LNG demand in China, India and Pakistan could recover from multi-year lows once Middle East supply disruptions ease and prices become more affordable. The conflict has restricted LNG shipments from Qatar and the UAE through the Strait of Hormuz, pushing Asian spot LNG prices close to $30 per MMBtu from around $10 before the war.

The price surge has pressured demand in India, where several industries can switch to coal or oil when gas becomes expensive. GAIL said India initially reduced gas consumption because of supply constraints, but alternative sourcing has restored supplies to around 90-95% of previous levels. GAIL expects 150-200 million tonnes of new LNG supply to become available globally over the next four to five years.

Pakistan could also see gas demand recover as additional LNG becomes available at lower prices. Solar power has helped address electricity shortages, but gas remains important for households and other users.

In China, PetroChina expects gas-fired power demand to improve if LNG prices return to roughly $7-$9 per MMBtu. Rising electricity consumption could further support demand.

Shell estimates that around 36 million tonnes of LNG from the Middle East have been disrupted this year. GAIL and PetroChina are seeking alternative cargoes to compensate for reduced supplies from the region.

Industry executives expect the current demand weakness to be temporary, with consumption in the three Asian markets potentially strengthening as new LNG capacity comes online and prices move closer to pre-war levels.

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Published: Sep 16, 2026

cricket blog team

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