LNG demand in Asia could decline for a second consecutive year in 2026. Analysts estimate the decrease at 3–10% compared with 2025, Reuters reports. The main reason is supply disruptions from the Persian Gulf caused by the military conflict involving the United States, Israel and Iran.

According to Wood Mackenzie, demand in the Asia-Pacific region is expected to fall to 257 million tonnes, compared with 268 million tonnes in 2025 and a record 278 million tonnes in 2024. Most of the decline is expected to come from Northeast Asia.

“These countries have coal and available nuclear generation capacity. Depending on the structure of their energy mix, they were able to reduce LNG consumption,”

Reuters quotes Rystad Energy analyst Lu Ming-Peng as saying.

According to Kpler, China’s LNG imports could decline by 6.1 million tonnes year-on-year. Energy-intensive industries, including ceramics, methanol and glass production, have been forced to cut output or shut down plants due to higher fuel costs. Increased withdrawals from gas storage facilities, higher domestic production and growing pipeline imports have also reduced China’s need for LNG purchases.

The conflict began on February 28. Following Iranian attacks that disabled 17% of export capacity, QatarEnergy declared force majeure and suspended exports. Spot LNG prices in Asia more than doubled to USD 26 per MMBtu, the highest level since December 2022. Analysts do not expect demand to recover before 2027, provided that Qatari exports through the Strait of Hormuz resume.