Top Asian LNG markets boost coal use as Iran war limits supply

Japan and South Korea increased coal-fired power generation in April and early May as the Iran war disrupted LNG supplies and pushed up super-chilled fuel prices. The shift signals near-term stress in Asian energy markets, with higher LNG costs encouraging fuel switching toward coal. The news is likely supportive for coal demand and bearish for LNG-linked pricing in the region.

Analysis

Japan and South Korea increased coal-fired power generation in April and early May as the Iran war disrupted LNG supplies and pushed up super-chilled fuel prices. The shift signals near-term stress in Asian energy markets, with higher LNG costs encouraging fuel switching toward coal. The news is likely supportive for coal demand and bearish for LNG-linked pricing in the region.