BY COMFORT OGBONNA
India began rationing natural gas on Tuesday as countries across Asia scrambled to secure alternative supplies, activate emergency plans, and prepare to ramp up domestic production amid a Middle East conflict that has curtailed shipping and halted output from Qatar.
Officials and executives in Japan, Taiwan, Bangladesh, and Pakistan said they did not expect an immediate impact, as some LNG cargoes scheduled for this month had already arrived. However, they emphasized plans to diversify import sources and purchase additional liquefied natural gas (LNG) from the spot market if the conflict continues. LNG buyers in Asia account for more than 80% of shipments from Qatar, the world’s second-largest producer after the U.S., according to analytics firm Kpler.
In India, gas companies reduced supplies to industrial customers in anticipation of tighter availability resulting from the halt in Qatari production. Taiwan, which generates over 40% of its electricity from LNG and imports a third of that supply from Qatar, announced plans to buy more LNG from the U.S. and to potentially coordinate with South Korea and Japan if a shipping blockade persists. Taiwan’s Premier Cho Jung-tai said an “emergency response mechanism” had been activated to address the supply disruption, emphasizing a continued strategy of diversifying energy sources.
Japan, the world’s second-largest LNG importer, sources roughly 4% of its gas from Qatar. The country’s trade minister indicated that utilities could turn to the spot market or adjust internal trades to maintain supply if necessary.
In South Asia, Bangladesh and Pakistan face heightened risks. Officials compared the current situation to the aftermath of Russia’s 2022 invasion of Ukraine, when LNG supply disruptions drove prices sharply higher and caused prolonged power outages. Bangladesh may need to increase coal and electricity imports from India, while Pakistan plans to boost domestic natural gas production and reduce regasification rates at its LNG terminals. Benchmark Asian LNG prices jumped nearly 40% on Monday, and European wholesale gas prices rose around 35–40%.
A senior official at Bangladesh’s state-run Petrobangla said a prolonged disruption could strain power generation and industrial output as the peak summer season approaches. So far, only four of Bangladesh’s nine scheduled Qatari LNG cargoes for March have passed through the Strait of Hormuz, prompting Dhaka to explore additional spot market purchases. “The real question is where prices will go,” the official said. “Prices could rise manyfold and frankly, we simply cannot afford that.”
Pakistan, which imports nearly all its LNG from Qatar, may temporarily benefit from delivery delays, as a previous glut had forced domestic gas extraction companies to reduce output and depleted foreign exchange reserves. Nonetheless, regional energy markets remain on high alert as the conflict threatens both supply and affordability, with governments racing to stabilize electricity and industrial operations amid rapidly escalating prices.