Coal Demand Set for Record High in 2026 Amid Rising Gas Prices

The International Energy Agency (IEA) is forecasting that global demand for coal may reach a record high of 8.94 billion tonnes in 2026, with a projected growth rate of 1.2%.

This forecast is based on the impact of rising natural gas prices due to reduced liquefied natural gas flows through the Strait of Hormuz.

Rising demand for coal is expected in Asia, particularly in countries such as Japan, India, Bangladesh, the Philippines, South Korea, Thailand, Taiwan, China and some European countries, where coal is being used more frequently for electricity generation due to the reduced availability of natural gas.

China's demand for coal is projected to increase by 1% to about 5 billion tonnes, while India's demand may rise by 4.2% to 1.353 billion tonnes.