LNG demand in Asia may fall by 3–10% in 2026 — OilPrice
Demand for liquefied natural gas in Asia may decrease by 3–10% in 2026 due to high prices, analysts cited by Reuters forecast, as reported by OilPrice. If this forecast materializes, it will mark the second consecutive annual decline in LNG demand in the region.
Demand in Northeast Asia
According to Reuters, the largest share of the demand decline will fall on Northeast Asia. Rystad Energy analyst Lu Ming Pang noted that countries in the region may have reduced LNG consumption through the use of coal and the availability of nuclear generation. According to him, the ability to reduce gas demand depends on the structure of a particular country’s energy system.
According to Kpler, Asian LNG imports in September may amount to 20.09 million tonnes. This will be the lowest September figure since 2018. In September last year, Asian countries imported 22.27 million tonnes of liquefied gas.
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The most significant decline in imports is expected in China, the world’s largest LNG importer, which is sensitive to price fluctuations. Kpler analyst Nelson Xiong said that at the current high prices, Chinese buyers may postpone significant purchases to replenish inventories until the end of December or the first quarter of 2027.
High LNG prices
Reuters, cited by OilPrice, reported that the price of LNG reached $26 per million British thermal units in the week ending September 11. For comparison, in the last week of February, before the first U.S. and Israeli strikes on Iran, it stood at $10.40 per million British thermal units.
OilPrice links the price surge to QatarEnergy’s force majeure on exports, announced after strikes on the Ras Laffan gas complex, which the publication attributes to Iran. At the same time, LNG demand in India, according to LSEG, is expected to remain resilient due to household gas consumption and fertilizer production needs.
