India and China’s liquefied natural gas (LNG) demand is expected to rebound once the Middle East supply crunch eases and prices fall, a Reuters report said, citing industry executives, as the US-Iran war drives Asian buyers towards cheaper alternatives like coal and oil.
The disruption has cut off much of the LNG supply from Qatar and the United Arab Emirates through the Strait of Hormuz, through which around a fifth of global LNG supplies previously moved. The resulting squeeze has sent Asian spot LNG prices close to $30 per million British thermal units (MMBtu), from around $10 per MMBtu before the war.
