As energy buyers in Europe reorganize to wean themselves off Russian gas in the wake of Vladimir Putin’s war on Ukraine—and natural gas prices skyrocket—Asian countries are facing some serious sticker shock.

Liquefied natural gas demand in Asia has already taken a meaningful hit. In the long run, the consequences could be even more profound—slower Asian LNG demand growth through the remainder of the first half of the decade. That could prove to be a structural growth headwind for key Asian LNG exporter Australia and companies like Shell and Woodside Petroleum that are invested heavily there, although higher prices for existing contracted sales will help cushion the blow.

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