Japan Considers Switch From LNG to Coal

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94%
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Short Term

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Japan is considering ramping up coal-fired power generation amid a liquefied natural gas crunch that has led to significantly higher prices. Per a proposal drafted by the economy ministry, the 50% utilization rate cap on coal-fired power plants could be removed in the new fiscal year that begins in April, Reuters reported, adding that this could reduce consumption of LNG by half a million tons annually. For context, Japan imports around 4 million tons of liquefied gas annually from the Middle East. This also happens to be the amount of LNG that…

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Original article published by OilPrice.com on March 27, 2026.
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