Coal Demand Surges to Record High Amid LNG Shortage
The International Energy Agency (IEA) has reported that global coal demand is set to hit a record high in 2026 due to the ongoing conflict in the Middle East. The Strait of Hormuz blockage, which began over six months ago, has disrupted LNG shipments and pushed prices higher.
As a result, economies including China, India, Japan, South Korea, and Europe have turned to coal-fired capacity for electricity generation. According to the IEA's Coal Mid-Year Update 2026, global coal demand is expected to rise by 1.2% this year, reaching a record 8.94 billion tons.
The increase in coal demand is primarily driven by the crisis in the Middle East and an unusually strong El Niño weather pattern. China's coal demand is set for a 1% increase to 5 billion tons, while India will see a 4.2% rise to 1.353 billion tons.
The IEA warns that if the Strait of Hormuz remains closed to LNG shipments well into next year, global coal demand could further rise to new record highs.