LNG tug-of-war squeezes South Asia

Countries in the region are particularly sensitive to high LNG prices, but term contracts and a degree of inelastic power-sector demand may support flows

Intense competition between Europe and East Asia for limited LNG volumes means less—but not no—LNG flowing to South Asia. India was still the world’s fourth-largest LNG importer in 2021—behind China, Japan and South Korea, and narrowly above Taiwan, EIA data shows, but the country’s import volumes were down year-on-year. India imported 24mn t of LNG in 2021, according to data from commodity tracker Kpler, down from 26.3mn t in the previous year, albeit 2020’s supply glut and low prices were hugely propitious conditions for the South Asian importer. India imported just 1.5mn t in February this year, the lowest volume for any month since April 2020. But imports rebounded in May to 2.1mn t, the