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India Boosts Coal Usage Amid LNG Supply Disruptions

3/11/2026

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Story summary
  • India plans to increase coal usage to meet peak power demand this summer due to limited liquefied natural gas (LNG) supplies from shipping disruptions linked to the U.S.-Israeli war on Iran.
  • The government has not received bids for 12,000 megawatt-hours of gas-based power, prompting it to advise coal plants against shutdowns.
  • Experts predict peak demand may reach 250-260 gigawatts, but significant power cuts are unlikely due to sufficient coal, nuclear, and renewable energy resources.
  • The thermal coal market is seeing steady import demand, especially from power producers.