Record Global Coal Demand on Horizon Amid Soaring Gas Prices
Global coal demand is on track to hit a record this year due to rising natural gas prices and a strong El Nino, according to the International Energy Agency (IEA). The stronger demand for coal comes despite efforts to reduce greenhouse gas emissions through renewable energy sources.
The IEA had previously forecasted a decline in coal consumption by 2026, but has now revised its projections. Global coal demand is expected to rise 1.2% this year to a record 8.94 billion tonnes.
The disruption of liquefied natural gas (LNG) shipments through the Strait of Hormuz has contributed to higher natural gas prices, leading countries with spare coal capacity to switch to coal-fired generation. This phenomenon has been observed in major economies such as China, South Korea, Japan, and Europe.