Asia’s LNG affordability challenge amid surging supply

Wood Mackenzie projects Asian LNG demand to rise by 115 million tonnes (Mt) between 2024 and 2030. Much of this increase will be driven by the power sector in emerging economies, where booming electricity demand makes LNG an attractive complement to renewables and a cleaner alternative to coal. Yet affordability remains a key obstacle.

At current contract and spot prices, many governments spend billions subsidising LNG imports to cover the gap between regulated electricity tariffs and market realities. Bangladesh, for example, required US$1 billion in subsidies in 2024 – five times pre-2022 levels.

Recent years of extraordinarily high LNG prices have curbed demand growth. This is about to change. As new supply enters the market, spot prices are set to fall. Wood Mackenzie expects Asian spot LNG prices to decline from today's US$12–13/mmbtu to an average of US$8.8/mmbtu between 2028–2030. This marks a significant drop from post-Ukraine invasion peaks above US$30/mmbtu.

Fill in the form above to download the complimentary report, Asia’s LNG Affordability Challenge Amid Surging Supply, as we explore the shifting realities of LNG affordability across four key Asian markets and examine how the upcoming wave of new supply could reshape global LNG dynamics.