The International Energy Agency said in its second-quarter (April-June) natural gas market report released on the 24th that it could take up to about five years to restore production facilities in Gulf countries such as Qatar that were attacked by Iran. The impact could be especially large in countries and areas with heavy reliance on Gulf natural gas, including Taiwan, Bangladesh and India, it said.
According to the report, about 90% of natural gas exported from Persian Gulf countries via the Strait of Hormuz is shipped to Asia. Gulf suppliers account for more than 25% of natural gas imports across Asian countries and regions, it said. China is the largest importer from the region, followed by India, Taiwan, South Korea and Pakistan in the top five.
Taiwan has the highest dependence on Gulf natural gas at about 35%, followed by India and Singapore, the IEA said. China’s dependence remains below 10%.
The report noted that while India relies heavily on Gulf gas, gas-fired power accounts for less than 10% of its domestic electricity generation. By contrast, Taiwan generates about half of its power from gas-fired plants, making it among the most exposed to disruptions in Gulf supplies, it said.
The IEA said new production facilities in Gulf countries are coming online in stages, but many liquefied natural gas (LNG) projects originally scheduled to start operating from 2021 through the late 2030s could be delayed by the Iran conflict. If short-term supply losses coincide with slower growth in production capacity, the agency warned, cumulative LNG supply shortages of about 120 billion cubic meters could emerge from 2026 to 2030.
* This article has been translated by AI.
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