Global Coal Demand Surges Amid LNG Price Spike
The International Energy Agency (IEA) has revised its global coal demand forecast upwards due to elevated liquefied natural gas prices. According to the IEA's Coal Mid-Year Update 2026, the surge in LNG costs has led markets such as China, India, Japan, South Korea, and even Europe to lean more heavily on coal-fired generation for power.
This energy supply upheaval means global coal demand is now forecast to grow by 1.2%, lifting worldwide coal consumption to an all-time high of 8.94 billion tons this year. The IEA attributed the revised forecast mainly to the Middle East crisis and an exceptionally strong El Nino weather pattern.
Demand from the world's two largest coal users, China and India, is projected to climb this year. China's consumption is expected to increase 1% to 5 billion tons, while India's is set to grow 4.2% to 1.353 billion tons, recovering from a temporary slight decline last year.