Asia Turns to Coal Amid LNG Supply Crisis

Asian utilities are increasingly turning to coal-fired power to cut costs and ensure energy supply amidst the U.S.-Israeli conflict affecting LNG shipments. The LNG price spike has prompted countries like Bangladesh and the Philippines to ramp up coal use, while opportunities for renewables are gaining traction.

Amid the U.S.-Israeli war impacting LNG shipments, Asian utilities are ramping up coal-fired power generation to cut costs and ensure energy supply, industry officials have reported. Soaring LNG prices threaten demand across the region.

LNG prices in Asia have doubled, driven by halted shipments from Qatar and a choke on shipping through the Strait of Hormuz. Bangladesh is leaning on coal power, while Pakistan focuses on domestic power sources to avoid past LNG-related outages, their Power Minister Awais Leghari told Reuters.

In Southeast Asia, the transition away from LNG is echoed by countries like Vietnam and the Philippines. Meanwhile, war-driven supply disruptions threaten further LNG demand destruction, pushing renewables into the spotlight as a viable energy future in Asia.

(With inputs from agencies.)