LNG Demand Expected To Recover
China India Await Price Stability
Liquefied natural gas demand in China and India is expected to recover once the Middle East conflict eases and global LNG prices stabilize, industry executives said.
The ongoing conflict has disrupted LNG exports from major Middle Eastern suppliers, particularly Qatar and the United Arab Emirates, through the Strait of Hormuz. The disruption has significantly tightened global LNG supplies and pushed Asian spot prices sharply higher.
The higher prices have forced price-sensitive buyers in India and China to reduce LNG consumption and turn toward alternative fuels such as coal and oil. However, industry executives described the current decline in demand as temporary rather than a permanent shift away from natural gas.
The outlook is also supported by significant new LNG capacity expected to come online globally over the next several years. Industry estimates suggest around 150 million to 200 million tonnes of additional capacity could be added over the next four to five years, potentially improving supply and helping stabilize prices.
A recovery in LNG demand would also support the longer-term transition toward natural gas, particularly in power generation, as China and India balance energy security with efforts to use cleaner fuels.