Morgan Stanley: LNG supply risk triggered by Middle East conflict may cause more concerns in Asia.

Economists from Morgan Stanley stated in a report that the disruption of liquefied natural gas supply due to Middle East conflicts may be more concerning for certain Asian economies than the risk of oil supply. They mentioned that for economies that rely on liquefied natural gas from the Middle East, it would be difficult to find alternative sources of supply. They added that most Asian economies also have limited stockpiles due to storage challenges. They said that these economies may start looking for alternative fuels for power generation, such as coal which offers flexibility in consumption rates, or curb consumption in their industrial sectors. They added that among Asian economies, India, South Korea, and Thailand may be most susceptible to the risks of liquefied natural gas supply as they have limited days of inventory and depend on imports from the Middle East.