LNG Demand Expected to Rise in China and India as Prices Normalize
Depressed liquefied natural gas (LNG) demand in China and India has been attributed to soaring prices driven by the Middle East conflict, particularly affecting supply from Qatar and UAE through the Strait of Hormuz. Industry executives predict a rebound once tensions ease and prices return to normal levels. Despite some limited LNG shipments moving via ship-to-ship transfers outside the strait, overall flows remain low, contributing to record Asian spot LNG prices since 2022. Executives from major companies like GAIL in India and PetroChina International (PCI) noted that high prices have temporarily suppressed demand. However, they expect a recovery when prices fall below $10 per million British thermal units (MMBtu). China is also focusing on building energy infrastructure to ensure cost efficiency and reliability. At the Gastech conference, industry leaders emphasized price sensitivity in Asian markets while highlighting strong long-term potential for LNG demand growth.
Topics: China and India energy markets LNG demand Middle East conflict Strait of Hormuz closure