“LNG Crisis Poses Risks Across Asia Including Bangladesh”

The recent missile strike by Iran on Qatar’s Ras Laffan Industrial City has raised serious alarm across South and South-East Asia, particularly in Pakistan, Bangladesh, and India, over potential large-scale electricity outages and disruptions to industrial production.

Ras Laffan is one of the world’s most critical liquefied natural gas (LNG) processing and export hubs, where nearly all of Qatar’s natural gas is processed before being shipped globally. The strike has caused extensive damage to the facility, threatening to disrupt the supply chains of countries heavily reliant on Qatari LNG.

According to The media said, Pakistan and Bangladesh source approximately 99% and 70% of their LNG imports from Qatar, respectively. Similarly, market research company S&P Global reports that over 40% of India’s LNG demand is met by imports from Qatar.

This disruption comes just three weeks after the outbreak of conflict with Iran, which has already impacted the critical Strait of Hormuz shipping route, a major channel for global energy transport. The latest missile attack compounds the situation, damaging what is arguably the world’s most important LNG facility.

The director of Ras Laffan and state-owned QatarEnergy had already suspended LNG production earlier this month due to operational challenges. The missile attack, however, may extend the time required for the facility to resume normal output.

Energy analysts warn that Pakistan and Bangladesh have limited domestic LNG reserves, sufficient to meet demand for only one to two weeks. Any prolonged disruption could trigger electricity shortages and restrict gas supply to industries, potentially slowing industrial output and economic activity. Requests for comment have been made to the energy ministries of Pakistan, Bangladesh, and India.

In East Asia, Taiwan also faces significant risk, as roughly one-third of its LNG imports originate from Qatar, and its current reserves cover just 11 days of consumption. Authorities in Taipei, however, have assured that sufficient supplies have been secured for March and April, with efforts underway to stabilise imports for May.

Meanwhile, Kpler notes that countries like China, South Korea, and Japan continue to receive large LNG shipments from Qatar. Their higher stockpiles and diversified import sources place them in a comparatively safer position. China, in particular, benefits from a broad range of LNG suppliers, helping the country weather the current disruption more effectively.

LNG Import Reliance by Country

The missile strike underscores the vulnerability of countries heavily dependent on single-source LNG imports. Governments across Asia are now monitoring the situation closely, seeking alternative supply routes and reserves to mitigate the risk of energy shortages.