Japan Plans Higher Coal Power Use to Offset LNG Shortages
Japan proposes suspending coal plant limits for one year to offset LNG risks. This move follows supply disruptions caused by conflict in the Middle East.
Japan is considering a significant increase in coal-fired power generation to counter the disruption of liquefied natural gas (LNG) imports caused by regional conflict. The Ministry of Economy, Trade and Industry (METI) plans to propose a one-year suspension of the 50% capacity utilization limit for coal plants, a move intended to stabilize the energy grid as the Strait of Hormuz remains effectively closed.
Currently, the nation imports about 4 million metric tons of LNG annually through the strait, representing 6% of its total supply. METI officials suggest that the shift toward coal could reduce LNG demand by 0.5 million tons per year, mitigating the impact of the shipping disruptions. This policy adjustment comes as the government monitors its 4-million-ton LNG stockpile and seeks to balance a thermal power mix that relies heavily on gas and coal.
