-- The war in the Middle East and the resulting disruption to liquefied natural gas supplies have already pushed several Asian countries to pursue alternatives, such as coal and nuclear, for their short-term energy needs, according to a report by the Institute for Energy Economics and Financial Analysis.
The report, published on Wednesday, noted that several LNG projects have been cancelled in China and Vietnam, while others, such as South Korea, India, the Philippines, Thailand, and Cambodia, have taken steps to accelerate domestic clean energy generation.
The IEEFA noted that despite the spike in short-term profits for LNG exporters, amid high prices and soaring demand, the industry is worried that the crisis is "hindering demand growth."
This conflict has already done lasting damage to LNG's reputation as a "transition fuel" for Asian economies, as they move from coal to clean energy, the report authored by Sam Reynolds, a research lead at IEEFA, said.
Asia purchased a total of 20.4 million tonnes of LNG in March 2026, down from a monthly average of 22.1 Mt in 2025, according to data from Kpler.
In the week ending March 29, the report said Asian weekly LNG imports reached their lowest levels since October 2023, with the largest dip seen in China, with imports down 21% year-over-year, and India following suit with a 20% decline compared to the prior year.
The report acknowledged that the growth of renewables was unlikely to eliminate the need for LNG in Asia, while adding that the commodity could be cordoned off to "smaller peaking roles," with significant reductions in volume.