Asia Turns Back to Coal as War Chokes Off Natural Gas

Across Asia, a sharp drop in liquefied natural gas supplies is pushing major importers back toward coal, undermining L.N.G.’s long-held role as a stable energy anchor.


Qatar Energy announced a shutdown of its liquefied natural gas production after Iranian attacks on energy installations. Getty Images

By River Akira Davis
Reporting from Tokyo

March 18, 2026

The war in the Middle East is forcing a reckoning for nations dependent on liquefied natural gas, the fuel anchoring power generation across many of Asia’s largest economies. ... Now in its third week, the fighting has effectively closed the Strait of Hormuz and shut down Qatari production, removing about a fifth of the global supply of liquefied natural gas, or L.N.G., from the market.

This poses an existential threat to energy networks throughout Asia, by far the world’s largest consumer of the fuel and the recipient of more than 80 percent of Qatar’s exports. Locations including Japan, Singapore, Thailand, Taiwan, Pakistan and Bangladesh generate a third or more of their electricity from natural gas. ... To ward off potential shortages, utilities across the region have competed to buy up remaining cargoes at record prices on the so-called spot market. Some are taking steps to ration energy and dip into state funds to alleviate price increases. Many facing supply shortages and price increases are turning back to coal-fired power plants.

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In the wake of the 2022 energy crisis, L.N.G. was promoted as a stable alternative to pipeline gas because it could be shipped anywhere in the world. Ander Gillenea/Agence France-Presse — Getty Images

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Thailand led the push in the early 2010s as nations began increasing how much gas they imported as their gas reserves dwindled. Lauren DeCicca for The New York Times

In Bangladesh, utilities have begun significantly increasing their use of coal to create electricity since the start of the war in Iran, data from Bangladesh’s state-owned company responsible for electricity transmission show.

Supply disruptions are causing problems in Asia’s most developed economies as well. Taiwan’s economy ministry said this month that it would be prepared to buy more L.N.G. from the United States and restart its retired Hsinta coal-fired power plant if supply disruptions persisted through April. South Korea is also preparing to boost nuclear and coal-fired power generation to offset volatility in oil and L.N.G. supply, its industry minister said last week.

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Muktita Suhartono and Elian Peltier contributed reporting.

River Akira Davis covers Japan for The Times, including its economy and businesses, and is based in Tokyo.

A version of this article appears in print on March 19, 2026, Section B, Page 1 of the New York edition with the headline: Asia Reverts To Coal Use As War Jams L.N.G. Flow. Order Reprints | Today’s Paper | Subscribe