Japan and South Korea boost coal use amid LNG supply cuts
Japan and South Korea increased coal power as the Iran war disrupted LNG exports. Rising gas prices led utilities to switch fuels to ensure energy security.
Japan and South Korea increased coal-fired power generation in April and early May as the Iran war disrupted liquefied natural gas supplies. Retaliatory strikes knocked out 17% of LNG export capacity in Qatar. Asian spot LNG prices have surged 62% since the war began, compared to a 13% rise in the Newcastle coal benchmark, forcing utilities to switch toward coal for power generation.
Japanese gas-fired power supply fell to two-year lows in April, while South Korean levels hit a six-month low. Data from the Japanese Electricity Market Data Hub and Korea Power Exchange confirmed the decline. Andre Lambine, a power analyst at S&P Global Energy, said the power switching will likely increase as the conflict continues.
