Asia Depends on L.N.G. From the Middle East. This Is What Happens When It Runs Out.
The New York Times • • business
Key Points:
- Asia faces an imminent complete cutoff of Middle Eastern liquefied natural gas (LNG) due to the blockade of the Strait of Hormuz and attacks on Qatar's LNG export facilities, reducing global supply by about 28 million tons this year.
- The disruption represents nearly all the forecasted global LNG supply growth for 2026 and may persist until at least 2028, when increased U.S. gas production is expected to alleviate shortages.
- Asia, which imports around 90% of Middle Eastern LNG, has so far relied on shipments already en route, but these supplies will be exhausted in the coming days, creating a significant supply-demand gap.
- Major Asian economies including China, Japan, India, and South Korea, along with emerging markets like Vietnam and Thailand, depend heavily on LNG for power generation, putting industrial output at risk amid the disruption.
- In response, affected countries are increasingly switching to oil and coal for electricity and implementing consumption cuts, measures likely to intensify as the energy supply crisis continues.
