In its report, “Asian LNG Demand to Decline for Second Consecutive Year,” Wood Mackenzie forecasts that Asia-Pacific liquefied natural gas (LNG) demand will fall from 268 million metric tons in 2025 to 257 million metric tons in 2026, marking a second straight year of declining consumption. The downturn is being driven by higher spot LNG prices, supply disruptions linked to conflict in the Middle East, and increased fuel switching as utilities and industries seek lower-cost alternatives.
Wood Mackenzie notes that Asia is especially vulnerable because nearly 90% of LNG exports from Qatar and the UAE transit the Strait of Hormuz and are destined for Asian markets. While demand is expected to weaken in major importers such as China, Japan, and South Korea, Southeast Asia is projected to continue growing over the longer term as countries expand LNG infrastructure and retire coal- and diesel-fired power plants.
Wood Mackenzie expects regional LNG demand to rebound in 2027 as supply conditions improve, geopolitical risks ease, and new import capacity comes online.
