Iran War fallout: Russia and China quietly take over natural gas markets in Asia, with Qatar gone
Inside China Business | April 20, 2026
The Iran War and the closure of the Strait of Hormuz have taken Qatari energy supplies completely off the market. Russian natural gas fields were shut out of Europe beginning in 2022, and energy giants there invested massively into new pipelines to Asia. China was a ready buyer for Russian oil and natural gas, and also invested heavily into huge strategic stockpiles of crude and natural gas storage. Now Russian energy production flowing East, and China is already well-supplied. Liquefied Natural Gas of Russian origin is offered at 40% discount to spot, to induce long-term supply relationships. As a result, Asian economies are shifting their supply chains from the Persian Gulf to Russia-China. Meanwhile, EU countries are unable to get LNG at all.
Resources and links:
Bloomberg, Russia Offers Sanctioned LNG to Energy-Hungry Asia at a Discount https://www.bloomberg.com/news/articl…
S&P Global, Russia crude oil pipeline capabilities to mainland China—The ESPO crude oil pipeline https://www.spglobal.com/energy/en/re…
Power of Siberia 2 reshapes China’s energy security calculus https://eastasiaforum.org/2025/10/31/…
Reuters, Russia’s Gazprom supplied 38 bcm of gas to China via Power of Siberia pipeline in 2025 https://www.reuters.com/business/ener…
Russia’s Oil Windfall From Middle East War Keeps Growing https://www.bloomberg.com/news/articl…
Reuters Exclusive: Iran attacks wipe out 17% of Qatar’s LNG capacity for up to five years, QatarEnergy CEO says https://www.reuters.com/business/ener…
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