OilPrice · March 18, 2026 (12h ago) · 1 min read

Asia Hikes Coal Use as Middle East War Chokes Gas Supply

Analysis

OilCyprus Editorial

The article reports that Asian countries are increasing their coal consumption due to a disruption in LNG supply caused by the Middle East war, specifically a shutdown of Qatari LNG production and exports. This shift highlights the vulnerability of relying on a single LNG supplier and the continued importance of coal in Asia's energy mix.

Key Facts

The Middle East war caused a 20% reduction in global LNG flows.
Qatar, a key LNG supplier to Asia, shut in production and exports.
China, India, South Korea, and Japan are increasing their coal use in response.

Market Impact

This event underscores the geopolitical risks associated with LNG supply chains and the potential for price volatility. It may lead to increased investment in coal infrastructure in Asia, despite environmental concerns, and could prompt diversification of LNG sourcing strategies. The incident could also incentivize the development of alternative energy sources and energy storage solutions in the long term.

Why This Matters for Cyprus

This situation demonstrates the fragility of global energy markets and the need for diversified energy sources and robust supply chains to mitigate disruptions and ensure energy security.

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