Asia ramps up use of dirty fuels to cover energy shortfall triggered by Iran war
Why it matters: The effective closure of the Strait of Hormuz has removed almost 30 billion cubic meters of LNG from global supply chains.
- Asian governments, including South Korea, Thailand, and the Philippines, are delaying coal plant shutdowns, increasing output, and boosting operations to compensate for energy shortfalls.
- India, which depends on coal for nearly 75% of its power, has directed its coal plants to operate at maximum capacity, while Bangladesh increased both coal-fired power generation and imports.
- Henning Gloystein of Eurasia Group notes that almost 30 billion cubic meters of LNG have been removed from global supply chains, with over 80% of this deficit impacting the Indo-Pacific region, flipping the market from a surplus to a severe deficit in four weeks.
- Experts warn that strikes on a major LNG export facility in Qatar will exacerbate shortages and have a years-long impact, further pressuring countries to use coal.
- Pauline Heinrichs of King's College London and other climate experts emphasize that this crisis should be a turning point for governments to invest in renewables, which offer a more stable supply not exposed to price shocks, though India is also accelerating wind power and battery storage projects.
Across Asia, nations from South Korea to India are rapidly increasing their reliance on coal, the dirtiest fossil fuel, to combat severe energy shortfalls caused by the US-Israel war on Iran and the resulting disruption of Middle Eastern energy supplies. This pivot to coal, despite its environmental impact, is seen as the fastest and cheapest way to replace lost liquefied natural gas (LNG) supplies, even as climate experts warn it should instead accelerate investment in stable renewable energy sources.
