Asia Shifts to Coal Amid Soaring LNG Prices

Asian utilities are shifting their focus to coal-fired power generation due to soaring liquefied natural gas (LNG) prices, which have doubled to three-year highs. The price surge is attributed to the U.S.-Israeli war on Iran, which has choked LNG shipments through the Strait of Hormuz and halted exports from Qatar, the world's second-largest supplier.

Bangladesh is increasing coal power generation and imports in March, according to government data. Pakistan aims to boost domestic power sources after solar additions helped it avoid widespread outages following Russia's invasion of Ukraine.

The Philippines is ramping up coal-fired power while slashing LNG-fired output. Vietnam's EVN is negotiating coal supply, and Thailand is boosting generation from its largest coal plant to preserve LNG. South Korea plans to remove ceilings on coal-fired output and increase nuclear generation.