Southern Asia’s gas plans may be overblown

The briefing examines the US$107 billion in potential investment for LNG terminals and gas pipelines in Southern Asia, specifically India, Bangladesh, and Pakistan. While industry forecasts predict strong demand growth, Global Energy Monitor (GEM) finds that these countries have shelved or cancelled 2–3 times as much proposed LNG import capacity as they have brought online over the last decade. The document highlights that LNG remains uncompetitive against falling renewable power costs and that recent geopolitical shocks, such as the March 2026 conflict in Iran affecting the Strait of Hormuz, underscore the energy security risks of LNG dependence. While India continues to promote gas infrastructure, Pakistan has shifted toward domestic power and local gas exploration, and Bangladesh's new government signals a move toward renewables and domestic gas.

• Southern Asia has significant gas infrastructure in development, representing US$107 billion in potential investment, including 110.7 million tonnes per annum (mtpa) of LNG import capacity and 34,146 kilometers of gas pipelines, with the majority of these projects located in India.
• There is a high rate of failure for LNG import projects in Southern Asia; over the past ten years, the region's importers have cancelled or shelved 2–3 times more planned import capacity than they successfully brought online.
• LNG is often uncompetitive compared to alternatives in the region. Emerging economies generally require prices around $3-5/mmBtu to make gas an attractive large-scale alternative to coal and renewables, yet new export projects typically need average delivered costs of around $8/mmBtu to cover operations and investment.
• Geopolitical instability, specifically the March 2026 U.S.-Israeli attack on Iran and subsequent disruption of the Strait of Hormuz, has demonstrated the volatility of LNG markets and the risk to Asian buyers, as 80% of the one-fifth of global LNG passing through the strait goes to Asia.
• India is actively pursuing a goal to increase gas consumption to 15% of its energy mix through the National Gas Grid project and expansions like the 19.92 mtpa Hazira LNG Terminal, although six of its eight operational terminals operated at less than 50% utilization in fiscal year 2025.
• Pakistan has reversed its strategy to increase LNG imports, opting instead to stop building new LNG-reliant power plants and focusing on domestic renewable, nuclear, and coal power, as well as unconventional gas exploration.
• Bangladesh's new government, the Bangladesh Nationalist Party (BNP), has indicated a shift away from imported fuels, aiming to increase the share of renewable energy in the power mix from 4–5% to 20% by 2030.

APA

Global Energy Monitor (2026). Southern Asia’s gas plans may be overblown. https://globalenergymonitor.org/sites/default/files/migration/reports/GEM-Asia-Gas-Brief-March-2026_3.pdf

Chicago

Global Energy Monitor. Southern Asia’s gas plans may be overblown. 2026. https://globalenergymonitor.org/sites/default/files/migration/reports/GEM-Asia-Gas-Brief-March-2026_3.pdf.

Wikipedia

{{cite report |author=Global Energy Monitor |title=Southern Asia’s gas plans may be overblown |date=March 2026 |url=https://globalenergymonitor.org/sites/default/files/migration/reports/GEM-Asia-Gas-Brief-March-2026_3.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{globalenergymonitor2026southern, author = {{Global Energy Monitor}}, title = {{Southern Asia’s gas plans may be overblown}}, institution = {Global Energy Monitor}, year = {2026}, month = mar, url = {https://globalenergymonitor.org/sites/default/files/migration/reports/GEM-Asia-Gas-Brief-March-2026_3.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }