Coal prices jumped more than 8% to around $128 per ton, reaching their highest level since December 2024, after a rare shutdown at Qatar’s liquefied natural gas (LNG) facilities spurred additional fuel switching in the power sector. The disruption followed an Iranian drone strike on Qatar’s main LNG export hub, underscoring mounting geopolitical tensions in the Middle East.
The facility, which supplies roughly 20% of global LNG, had never fully suspended operations in its three decades of activity. With many Asian economies heavily dependent on Qatari LNG, Taiwan signaled it may increase coal-fired power generation if the outage is prolonged.
At the same time, expectations of robust global energy demand are outweighing the policy push toward cleaner fuels. China — the world’s largest coal producer and consumer — is adding new coal-fired capacity to bolster energy security and support grid stability.
