Coal prices surged more than 8% to around $128 per ton, hitting their highest level since December 2024, after a rare shutdown at Qatar’s liquefied natural gas facilities boosted demand for fuel switching in the power sector.

The move follows an Iranian drone strike on Qatar’s main LNG export hub, highlighting escalating tensions in the Middle East. The facility, which supplies about 20% of global LNG, had never fully halted operations in its 30-year history.

With many Asian economies reliant on Qatari LNG, Taiwan indicated it may ramp up coal-fired power generation if the disruption persists.

Meanwhile, expectations of strong global demand outweighed the shift toward cleaner energy, with China, the world’s largest coal producer and consumer, adding new coal-fired capacity to maintain energy security and grid stability.
Source: Trading Economics