Asia ditches LNG for coal after Iran war sends prices soaring

Asian utilities are boosting coal-fired power generation to cut costs and safeguard energy supply, industry officials say, as the US-Israeli war on Iran chokes Liquefied Natural Gas (LNG) shipments and soaring prices threaten to suppress LNG demand.Asia spot LNG prices have doubled to three-year highs in the second major supply shock in four years, as shipping through the Strait of Hormuz has all but stopped and No 2 global exporter Qatar has halted shipments.In South Asia, Bangladesh is increasing coal power generation and coal-fired power imports in March, daily government data shows.Pakistan aims to further boost power generated from domestic sources after solar additions helped it avoid a repeat of the LNG supply volatility behind widespread outages following Russia’s 2022 Ukraine invasion, according to Power Minister Awais Leghari.“With reduction in LNG generation, plants running on locally mined coal will be able to produce more during off-peak hours,” Leghari said.People sail past a coal-fired power plant in Oyon Bay in the Philippines. Photo: AFPIn Southeast Asia, the Philippines is ramping up coal-fired power and slashing LNG-fired output, while Vietnam’s EVN said last week it was negotiating coal supply and Thailand is boosting generation from its ⁠largest coal plant to preserve LNG.