India LNG Demand Drops 1.5 Million Tons as Iran Conflict Disrupts Supply

Key Facts

1India’s natural gas demand declined by 1.5 million tons this year as the Iran war choked supplies and hiked spot prices.

2Wood Mackenzie previously expected South Asian LNG demand to rise by 7% before the war trapped supplies from Qatar and the UAE.

India’s natural gas demand declined by 1.5 million tons this year as the Iran war choked supplies and hiked spot prices. Oilprice.com reported that the conflict has effectively trapped LNG exports from major producers including Qatar and the United Arab Emirates within the Persian Gulf, obstructing primary shipping routes.

Wood Mackenzie previously expected South Asian LNG demand to rise by 7% before the outbreak of war obstructed the Strait of Hormuz. The supply disruption has led to broader demand destruction across the region, including a 3 million ton drop in Bangladesh, while Indian tender prices jumped to $26.4 per MMBtu by September 2026 from earlier levels of $16.8–18.8 per MMBtu.