Rising LNG prices and Middle East supply disruptions push top Asian importers to increase coal-fired power generation and imports.
Japan and South Korea, the world’s second- and third-largest LNG importers, have ramped up coal power generation and imports due to surging LNG prices and supply shortages. Gas-fired power output in both nations fell to multi-month lows in April and early May as Middle East shipments collapsed.
No Qatari LNG cargoes passed through the Strait of Hormuz between February 28 and last weekend, disrupting supply chains. The shift to coal reflects efforts to secure stable energy amid volatile LNG markets and geopolitical tensions.
The move underscores the region’s vulnerability to energy supply shocks and could pressure global coal demand in the near term.