Asian LNG market turns to coal as Iran conflict tightens supply

SINGAPORE – Market data shows that major LNG importers in Asia, including Japan and South Korea, ramped up coal-fired power generation in April and early May, as the Iran war disrupted supply of the super-chilled fuel and sent prices soaring.

The shift to coal comes as these countries face severe LNG shortages, with the conflict in Iran – a major oil and gas producer – affecting shipping routes and global supply.

Switching to coal eases pressure on energy systems but raises environmental concerns, as these nations have previously pledged to reduce reliance on fossil fuels.