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Bangladesh, Pakistan face energy crunch as Gulf tensions disrupt LNG supplies

Escalating Middle East tensions have triggered significant liquefied natural gas shortages, with Shell reporting a loss of approximately 36 million tonnes of LNG production from the Gulf region. South Asian energy markets are experiencing mounting pressure as suppliers struggle to meet demand.

LSN Singapore · 17 September 2026

Bangladesh, Pakistan face energy crunch as Gulf tensions disrupt LNG supplies

Energy security concerns are intensifying across South Asia as geopolitical tensions in the Middle East disrupt global liquefied natural gas supplies. Major oil and gas companies have flagged substantial production losses from Gulf facilities, with Shell estimating the region has shed roughly 36 million tonnes of LNG availability.

Bangladesh and Pakistan, both heavily reliant on imported natural gas to power their economies, face mounting challenges in securing adequate energy supplies. The disruptions come at a critical time as both nations grapple with existing energy shortages and infrastructure constraints.

The Gulf region accounts for a significant portion of global LNG exports, making supply disruptions there reverberate across Asian energy markets. Energy analysts warn that prolonged supply constraints could intensify inflationary pressures on fuel costs throughout the region and potentially impact industrial output.

Governments in South Asia are reviewing contingency measures and alternative sourcing arrangements to mitigate supply shortfalls. Energy officials have not ruled out temporary demand management strategies as the situation develops. Regional energy markets remain volatile as stakeholders assess the duration and extent of the supply disruption.