Asia's Coal Demand Jumps 70 Million Tonnes in 2026 as LNG Shortage Bites

Asia's coal consumption is set to rise by roughly 70 million tonnes in 2026 as a tightening liquefied natural gas market pushes power producers and industry back toward the cheaper fuel, according to analysis cited by Oilprice.com. With global LNG supply struggling to keep pace with demand and spot cargoes remaining costly, price-sensitive buyers across the region are reverting to coal to keep electricity generation affordable and secure. The shift is concentrated in Asia's largest economies, where coal already anchors the power mix and where utilities can ramp up coal-fired output faster than they can secure additional gas. India, China and several Southeast Asian markets are expected to drive most of the increase, prioritising baseload reliability and cost over the gradual switch to gas that policymakers had hoped to accelerate. The trend underlines how slim the global LNG cushion remains until a wave of new export capacity comes online later in the decade: until then, any gas-supply tightness translates almost directly into higher coal burn. For Qatar, the world's largest LNG exporter and a supplier expanding its North Field capacity, the dynamic reinforces the strategic value of long-term gas contracts to Asian customers wary of volatile spot prices.