WaPo Reports Surge in U.S. LNG Demand in Asia Amid Iran War, Citing DSET Analysis

The Washington Post recently reported that escalating conflict involving Iran, including disruptions to the Strait of Hormuz and damage to Gulf energy infrastructure, has triggered a sharp increase in demand for U.S. liquefied natural gas (LNG) exports across Asia. The report also cites analysis from DSET’s Director of Energy Security and Climate Resilience Program Tsaiying Lu.

The report notes that economies such as Taiwan, Japan, and South Korea—traditionally reliant on Middle Eastern energy supplies—are accelerating efforts to secure alternative sources. U.S. LNG has emerged as a key option, despite higher costs and logistical constraints, as governments seek to reduce exposure to geopolitical risks and supply disruptions.

According to the report, Taiwan plans to expand LNG imports from the United States through new long-term agreements, potentially increasing the U.S. share of its LNG supply in the coming years. Officials say that Taiwan’s government has secured enough LNG supplies through May. Tsaiying Lu, Director of Energy Security and Climate Resilience Program at DSET, noted that from June, Taiwan’s contract with Cherniere should add at least two new cargo shipments of LNG per month.

However, limited U.S. export capacity and longer shipping routes mean that American LNG cannot fully replace Middle-Eastern supply in the near term, contributing to rising prices across the region. Lu emphasized that diversification remains central to Taiwan’s energy security strategy. While Taiwan will likely procure more U.S. LNG on the so-called spot market — even if it comes at exorbitant prices, Lu also noted that Taiwan is actively comparing new deals to “better balance the price between the U.S. and other sources like Australia and Brunei.”

DSET’s Energy Security and Climate Resilience Program will continue to follow developments in the Middle East and its impact on Taiwan’s energy resilience and the region. Read the full Washington Post article here: https://www.washingtonpost.com/world/2026/03/23/iran-war-us-lng-exports-taiwan-trump-asia-natural-gas/