Japan Boosts Coal Power Amid LNG Import Uncertainty in Middle East Conflict

Japan's ministry of industry has announced a temporary relaxation of rules surrounding its coal-fired power plants, effective for one year from April. This decision stems from pressing concerns over liquefied natural gas imports impacted by geopolitical tensions involving a U.S.-Israel confrontation with Iran, leading to a blockade in the Strait of Hormuz.

The country usually receives about 6% of its total LNG imports via this route, and the ongoing conflict has effectively closed this critical passage. In light of these challenges, officials argue that returning to coal power is a necessary measure as part of a broader strategy to conserve LNG resources.

This shift will suspend the current 50% cap on coal plant capacity utilization where efficiency is under 42%. The Ministry of Economy, Trade, and Industry (METI) anticipates this could result in saving 0.5 million tons of LNG annually. While this measure is a temporary solution, it underscores Japan's commitment to long-term decarbonization goals and diversification of its energy portfolio.