Global buyers increase coal imports as liquefied natural gas shortages worsen

Energy buyers in Europe and Asia are increasing coal imports ahead of the winter season as a shortage of liquefied natural gas deepens. Oilprice reported that liquefied natural gas flows from the Persian Gulf remain more than 75 percent lower than levels recorded before February 28. [1]

Rising heating demand ahead of winter has driven up natural gas prices across global markets. Oilprice reported that the November natural gas benchmark contract in Europe is trading above 81 euros per megawatt hour. In Asia, spot market prices for liquefied natural gas have risen above European benchmarks, pulling shipments toward eastern markets. [1]

Coal prices are currently approximately 80 percent lower than liquefied natural gas, spurring the shift toward coal despite environmental regulations aimed at reducing carbon dioxide emissions, pollutant gases, and particulate matter. [1]

The supply disruptions follow the closure of the Strait of Hormuz during the 2026 conflict involving Iran, Israel, and the United States. Attacks on regional energy infrastructure disrupted global supplies of oil and liquefied natural gas from the Persian Gulf region, impacting world energy trade. [4][5]