Global Coal Demand Expected to Rise Amid Hormuz Strait Disruptions
The International Energy Agency (IEA) forecasts a rise in global coal demand for 2026 due to ongoing disruptions at the Strait of Hormuz, which have constrained oil and gas trade. As natural gas prices climb and LNG shipments decline through this critical maritime corridor, countries like Japan, India, China, South Korea, and several European nations are increasing their reliance on coal as an alternative energy source. The IEA predicts a 1.2% rise in global coal demand to a record high of 8.94 billion metric tonnes by the end of this year. Coal consumption is expected to grow significantly in China (up 1%) and India (up 4.2%). The situation could worsen if an intense El Niño weather pattern causes higher temperatures and reduced hydropower output, increasing electricity demand across Asia. Despite global efforts like those at COP26 aimed at reducing coal use for climate reasons, several countries are delaying or reversing their phase-out plans due to energy security concerns. Germany is considering restarting some coal plants while Italy has postponed the closure of its facilities by 13 years.
Topics: coal energy crisis global energy markets Hormuz Strait closure