Asian emerging markets spend $7.4 bn on spot LNG as Qatar supply dries up

The US-Iran war has essentially cut off Qatari LNG deliveries through the Strait of Hormuz, eliminating about 20 % of the supply that Asian emerging markets relied on. Consequently, India, Pakistan, Bangladesh, Thailand and Vietnam have bought spot LNG worth $7.4 bn since the conflict began, more than twice the cost of comparable long-term contracts a year earlier. This sharp cost increase threatens the perception of LNG as a dependable transition fuel, especially after the earlier Russia-Ukraine war caused similar shortages.

Analysts say continued price pressure could push these countries toward renewables, coal, nuclear or locally sourced gas, with solar becoming more attractive as battery prices fall. Companies such as TotalEnergies SE and Exxon Mobil are advancing projects like Papua LNG to diversify supply, while a McKinsey survey indicates 80 % of buyers plan to diversify procurement geographically. The shift may reshape global gas investment flows and the future of LNG in Asia.