Liquefied natural gas (LNG) becomes uncompetitive for developing economies in Southern Asia when prices rise above a narrow range of $3 to $5 per unit, according to the authors of the newly released report. While some major regional importers suggest they might manage slightly higher costs, the document indicates that current market realities and cheaper renewable alternatives are making expensive imported gas a risky financial bet for the region.
The report highlights that gas-importing emerging nations “would generally need prices at around $3-5/mmBtu to make gas attractive as a large-scale alternative to renewables and coal.” It further notes that this creates a significant economic gap because “delivered costs for most new export projects need to average around $8/mmBtu to cover their investments and operation,” making the fuel consistently too expensive for the local market.
In simple terms, for imported gas to be a better choice than building solar farms or using local coal, it needs to be available at a very low price—roughly half of what international suppliers actually need to charge just to pay back their own construction and shipping costs. Because the price of producing and delivering this fuel is often much higher than what countries like India or Pakistan can afford to pay, these nations are increasingly finding that wind and solar power are more reliable and affordable options.
The briefing ‘Southern Asia’s gas plans may be overblown’ was released by Global Energy Monitor in March 2026. Prepared by authors Robert Rozansky and Julie Joly, the report analyzes how geopolitical shocks and falling renewable costs are undermining ambitious gas infrastructure projects across India, Pakistan, and Bangladesh.
