Japan and Korea Boost Coal Imports as LNG Prices Surge
Japan and South Korea are ramping up coal-fired power generation and coal imports as LNG prices spike more than 60% since the war began and Middle East supply drops.
Japan and South Korea, the world's second- and third-largest LNG importers after China, are turning to coal as LNG prices surge and Middle Eastern supply falters. Gas-fired power generation in both countries slumped to multi-month lows in April and early May, driven by a sharp drop in LNG cargoes from Qatar and other Middle Eastern producers. The shift underscores the fragility of global energy markets amid geopolitical tensions.
The price of LNG in north Asia has spiked more than 60% since the war began, while international seaborne coal prices have also risen but remain more competitive. The supply crunch was exacerbated by the absence of Qatari LNG shipments through the Strait of Hormuz between late February and mid-May, when the first cargo cleared the chokepoint bound for Pakistan. For energy traders, this fuel-switching dynamic is a key indicator of price sensitivity and demand elasticity in the Asian market. Live fuel prices and charts on NowPrice show how the market is reacting to these shifts in real time.
Looking ahead, the pace of coal imports will depend on the duration of LNG supply disruptions and the trajectory of prices. If Middle Eastern LNG flows remain constrained, Japan and South Korea may continue to lean on coal through the summer peak-demand season. Traders should monitor weekly LNG cargo data and coal freight rates for signs of sustained switching. The Strait of Hormuz remains a critical chokepoint, and any further disruption could deepen the shift toward coal.