China and India recorded the steepest decline in liquefied natural gas (LNG) imports among major Asian economies in 2025, as elevated global spot prices, improved domestic gas production and softer industrial demand reduced purchases, according to ship-tracking data compiled by Bloomberg. The slowdown contributed to Asia's largest contraction in LNG imports since 2022 amid supply disruptions and higher prices. Imports by both China and India fell by around 20 per cent from a year earlier, making them the principal drivers of the regional decline.

China relied more on rising domestic output and pipeline gas from neighbouring suppliers, while Indian purchases reflected strong price sensitivity and a shift towards cheaper alternatives such as coal. For India, policymakers have sought to boost local production and expand gas infrastructure, which helped cushion the impact of volatile global prices even as imports remained important for fertiliser plants, city gas networks and industrial users. Chinese buyers also resold some cargoes in response to high international prices, which helped rebalance regional flows.

The decline followed disruptions to global supply routes, notably in the Middle East, which tightened availability and pushed up spot rates, prompting Asian buyers to reduce spot purchases. Market observers noted that higher costs made imported LNG less competitive against domestic fuels and long term contracts, accelerating a tilt towards energy diversification. The trend is expected to affect investment planning across the gas value chain, including import terminals, pipeline projects and storage capacity.

Industry analysts assess that demand in both markets may recover once global prices stabilise and supply conditions normalise, although near term prospects remain uncertain. The episode underlines the importance of boosting domestic gas output, securing long term supplies and diversifying fuel mixes to enhance energy security. Policymakers and investors are likely to reassess priorities for infrastructure and contractual arrangements in light of recent volatility.