Asia boosts coal use as Iran war squeezes global LNG supplies in Dry Bulk Market,Freight News 26/03/2026 Asian countries are turning to coal as the Iran war disrupts oil and gas shipments. The continent is exposed because it relies on imported fuel, much of it passing through the Strait of Hormuz — a chokepoint for about a fifth of global oil and natural gas trade. LNG is a natural gas cooled to liquid form for easy storage and transport. It has been promoted as a bridge fuel in the shift from oil and coal to cleaner energy sources. The U.S. has sought to expand exports of LNG across Asia. It burns cleaner than coal, but still emits climate change -causing gases, especially methane. The war has countries shifting back to coal to cover LNG shortfalls. India is burning more coal to meet higher summer demand. South Korea has lifted caps on electricity from coal. Indonesia is prioritizing using its domestic supply. Thailand, the Philippines and Vietnam are boosting coal-fired power. Burning more coal risks worsening smog in major cities, slowing the transition to renewable energy and increasing the region’s planet-warming emissions. Coal is a short-term fix, experts say, while renewables are the long-term solution. Continued reliance on coal exposes Asia to future shocks, said Julia Skorupska of the global coalition Powering Past Coal Alliance. This kind of crisis is a real sort of warning,” she said. Rising demand drives Asia back to coal Coal is integral to Asia’s emergency energy plans. Its wide availability in Asia makes it the default backup when renewables or gas fall short, said Sandeep Pai, an energy expert at Duke University. China, the top coal consumer and producer, has built record coal power generating capacity since 2021 to improve its energy security. Its national policy calls for continued use of coal, even as its vast clean energy capacity offers some relief. India, the second-largest coal consumer and producer, is bracing for a scorching summer and will rely more on coal to meet peak demand of 270 gigawatts — nearly twice the electricity Spain can produce. It has enough coal for about three months, with some stockpiles earmarked for small businesses. Two Indian liquefied petroleum gas shipments totaling more than 92,700 tons recently made it through the Strait of Hormuz. Such imports will likely be directed to industries such as fertilizer production rather than power generation, Pai said. Coal advocates such as Michelle Manook of FutureCoal say the shortfall would be worse without coal and future use should be strategic. “The lesson has to be diversity,” she said. Pauline Heinrichs, who studies climate and energy at King’s College London, points to China’s boosting use of coal to offset hydropower shortfalls due to droughts, worsening emissions that contribute to climate change. “You learn to respond to shocks generated by certain insecurities by reproducing the insecurity,” she said. Indonesia keeps coal for its own use Adding to the vulnerability for import-dependent countries, Indonesia, the world’s largest exporter, is prioritizing domestic use over exports. That could tighten regional supplies and push global prices higher, said Putra Adhiguna of the Energy Shift Institute. Coal prices are set globally, leaving importers exposed to swings and disruptions. More coal does not guarantee cheap or reliable power, said Russell Marsh of E3G. Vietnam is already facing that volatility. It increased imports after weather-relat