Story perspectives

Asian Utilities Shift to Coal Amid LNG Crisis

3/17/2026

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Utilities Shift to Coal

Asian utilities are increasing coal-fired power generation to manage costs and ensure energy supply amid disruptions in LNG shipments caused by the U.S.-Israeli war on Iran.
LNG prices have surged to three-year highs, with Qatar halting shipments.
Bangladesh and Pakistan are ramping up coal power, while Philippines and Vietnam shift toward coal, and analysts expect 2026 LNG demand growth to fall due to fuel costs boosting renewable investments.

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ASEAN Confronts Energy Crisis

Disruptions in the Strait of Hormuz threaten LNG supplies for the Association of Southeast Asian Nations (ASEAN), heightening energy insecurity.
Thailand and Vietnam enacted measures to reduce energy consumption amid the supply strain.
The Philippines introduced a four-day workweek to curb energy demand.
China remains the largest LNG importer, but its diversified energy mix reduces import reliance.
To boost security, the ASEAN Power Grid (APG) would integrate energy resources.

History

Historical Context

The 1973 oil crisis, triggered by OPEC's embargo during the Yom Kippur War, quadrupled oil prices and severely impacted economies, particularly Japan, which relied on Middle Eastern oil for 90% of its supply. This crisis prompted nations to diversify energy sources, leading to increased investments in renewables and nuclear power, a trend that remains relevant today amid ongoing energy security challenges.

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Utilities Shift to Coal

Asian utilities are increasing coal-fired power generation to manage costs and ensure energy supply amid disruptions in LNG shipments caused by the U.S.-Israeli war on Iran.
LNG prices have surged to three-year highs, with Qatar halting shipments.
Bangladesh and Pakistan are ramping up coal power, while Philippines and Vietnam shift toward coal, and analysts expect 2026 LNG demand growth to fall due to fuel costs boosting renewable investments.

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