Liquefied natural gas (LNG) markets in Asia are gradually recovering after a sharp disruption triggered by the Iran conflict, which temporarily removed nearly 20% of global supply routes from the market and destabilized regional trade flows.
According to data compiled by commodity analytics firm Kpler, Asia’s LNG imports are projected to reach 21.83 million metric tons in June, marking the strongest monthly level in five months. The figure also slightly exceeds the 21.55 million tons recorded in June last year, signaling a steady normalization in regional demand.
Iran Conflict Disruption Tightened Global LNG Supply
Asian LNG markets experienced significant volatility earlier in the year after geopolitical tensions escalated in the Middle East. Following military strikes involving the US and Israel on Iran in late February, shipments through the Strait of Hormuz were effectively disrupted, impacting flows from key exporters such as Qatar. Qatar alone shipped 80.9 million tons of LNG in 2025, making the disruption particularly significant for global supply chains.
As a result, Asia’s LNG imports fell to a six-year low of 18.74 million tons in April, reflecting one of the sharpest short-term contractions in recent years.
China’s LNG Demand Returns After Price Shock
China, the world’s largest LNG importer, played a central role in recent market volatility. In 2025, it narrowly retained its position with imports of 66.48 million tons, slightly ahead of Japan. In early 2026, Chinese utilities reduced spot purchases as prices surged following the Iran-related supply shock.
Spot LNG prices delivered to North Asia spiked to $25.30 per million British thermal units (mmBtu) in late March—an increase of 143% compared to pre-conflict levels of $10.40. Although prices later eased to $16.05 mmBtu in mid-April, they rebounded again, reaching $18.80 mmBtu by early June, reflecting renewed competition for cargoes. China’s imports are now recovering, with Kpler forecasting 4.48 million tons in June, slightly below May’s four-month peak of 4.74 million tons but significantly higher than March and April lows.
Japan Strengthens LNG Imports While South Korea Slips Slightly
Japan has also returned to stronger LNG purchasing, with imports expected to reach 5.33 million tons in June, a three-month high and above levels seen a year earlier. South Korea, the third-largest global LNG importer, is showing a more moderate trend. Imports are forecast at 3.26 million tons in June, slightly below both May levels (3.37 million tons) and June last year (3.48 million tons).
India Recovers as Supply Diversifies Beyond Qatar
South Asia was among the most affected regions after the disruption of Qatari exports. India’s LNG imports dropped to a three-year low of 1.67 million tons in March, reflecting supply constraints and price sensitivity.
Demand is now recovering, with imports expected to reach 2.09 million tons in June, nearly matching last year’s level of 2.11 million tons. India has increasingly diversified its supply base, sourcing LNG from Angola, Nigeria, and the United States.
Pakistan Faces Persistent Supply Constraints
Pakistan, historically heavily dependent on Qatari LNG, continues to struggle with supply diversification. June imports are projected at just 210,000 tons, a steep decline compared to 620,000 tons in June 2025. The country has managed only limited spot cargoes, including shipments from Oman and Qatar.
Although this represents a recovery from April’s 10-year low of 70,000 tons, supply conditions remain tight and structurally constrained.
US LNG Flows Shift Between Asia and Europe
On the supply side, US LNG exports surged into Asia immediately after the Iran-related disruption but are now beginning to normalize.
US shipments to Asia are expected to fall to 2.73 million tons in June, down from a record 4.07 million tons in May, though still well above pre-conflict averages of around 1.15 million tons per month.
At the same time, US LNG exports to Europe are rising again. Kpler estimates European-bound volumes at 4.99 million tons in June, up from 4.53 million in May. This marks a renewed pivot toward Europe, which had previously seen lower inflows since late 2024.
Global LNG Market Rebalances After Volatility Spike
The latest data suggests that the global LNG market is gradually stabilizing after a period of extreme volatility caused by geopolitical disruptions in the Middle East.
Key trends shaping the current landscape include:
- Recovery in Asian LNG demand led by China and Japan
- Gradual normalization of supply chains after the Iran conflict
- Increasing import diversification in India
- Persistent structural weakness in Pakistan
- Rebalancing of US LNG flows between Asia and Europe
