LNG imports to Asia fell the most since 2022 in March due to war in Iran

Imports of liquefied natural gas (LNG) to Asia fell by 8.6 percent to 20.6 million tonnes in March, the largest decline since December 2022. The conflict in the Middle East has disrupted supplies and pushed up prices. Bloomberg reports.

The US-Israeli war against Iran has significantly reduced global LNG supplies. The closure of the Strait of Hormuz disrupted about a fifth of global supplies. In addition, the world's largest LNG facility, in Qatar, was shut down following Iranian attacks. Parts of the complex have been destroyed, and reconstruction will take years.

According to Bloomberg, prices in Asia could rise even further as competition for supplies available in the short term intensifies. Pakistan, for example, which sourced almost all of its LNG from Qatar in 2025, saw deliveries fall by nearly 70 percent year on year in March.

Already limited supplies from the Middle East have been further squeezed by outages at Australian facilities caused by a cyclone last month. Many Asian countries are therefore looking for alternatives. Bangladesh, India and Japan are increasingly relying on coal. In Vietnam, conglomerate Vingroup JSC has urged the government to replace a planned LNG project with renewable energy. Asian buyers have also managed to divert some supplies from Europe, according to the news agency.

Europe itself needs more LNG to replenish storage after the disruption of Russian pipeline gas supplies. Shipping data show that LNG imports into Western Europe rose by around 3.5 percent year on year last month. They had already increased by 17 percent in February.