The Iran conflict is cutting the long-term role of LNG in Asia in General Energy News 20/04/2026 Asia’s imports of liquefied natural gas (LNG) plummeted in March 2026, as the Middle East crisis has effectively shut in 20% of global supply from Qatar and the United Arab Emirates (UAE). Despite a fragile two-week ceasefire between the United States (US) and Iran announced on 7 April, negotiations for a longer-term truce failed on 12 April, causing oil and gas prices to jump once again. The Strait of Hormuz remains closed, and it is unclear whether the passage will ever return to normal as a free waterway. Even once the conflict is fully resolved, oil and gas facilities in the Persian Gulf will take several months to resume normal operations, and 17% of Qatar’s LNG export capacity will be offline for up to five years. Spot market LNG prices in Asia have doubled since hostilities began and are widely projected to remain elevated through 2027. For many Asian economies, the Iran conflict has already done lasting damage to LNG’s reputation as a viable “transition fuel” from coal to clean energy. Governments are enacting short-term emergency measures to cushion the impact of supply disruptions and price spikes. These responses are likely to reduce the region’s imports in the coming months and may lead to longer-term LNG demand destruction. Alongside efforts to reduce energy demand and stabilize prices, several countries are reverting to coal, expanding nuclear capacity, or fast-tracking the deployment of battery storage and renewable technologies like wind and solar. Some are already canceling LNG projects. National responses vary, but one lesson is clear: just four years after the 2022 global energy crisis, geopolitical disruptions are once again undermining the case for LNG as an affordable, secure energy source for Asian countries. The Ides of March: Supply disruptions force Asia to reduce LNG imports Asia purchased 20.4 million tonnes (Mt) of LNG in March 2026, according to Kpler data, down from a monthly average of 22.1 Mt throughout 2025. Monthly figures mask lower imports toward the end of March. In the week ending 29 March, Asia recorded its lowest weekly import volumes since October 2023. Imports from Qatar were below 2 Mt in March — reflecting cargoes in transit before the conflict began — but fell to zero in the final week of the month. On a 30-day rolling average basis, shipments to Asia in mid-April reportedly fell to their lowest level since June 2020. The largest reduction in imports came from China, which imported 3.8 Mt in March, down by 21% year-on-year. Prior to the conflict, many analysts expected demand from China, the world’s largest LNG importer, to rebound in 2026 after falling by 15% in 2025. However, imports in February were at their lowest level since 2018 and declined further in March. Imports in the first quarter fell by 7% compared to already low levels in 2025. In April 2026, China’s 30-day rolling average of LNG imports fell to their lowest level since 2018. Based on seasonal buying patterns in recent years, the Institute for Energy Economics and Financial Analysis (IEEFA) expects China’s annual imports to decline again in 2026 to 59 million tonnes — an 11% drop. Already, China’s state-owned oil and gas company Sinopec has canceled a planned expansion of an LNG import terminal, reallocating funds to domestic natural gas production. Over the last five years, the country’s rapid buildout of renewable energy, an emp