New coal-fired capacity to weigh on Japanese LNG demand

Tepco's Futtsu thermal power plant in Japan. (Tepco)

The startup of new coal-fired generating capacity in Japan will dampen demand for LNG in the country’s power sector over the next couple of years and – in the absence of government intervention – cement the long-term share of the dirtiest fossil fuel in the country’s energy mix.

The share of coal has increased since the Fukushima disaster in 2011 led to the closure of Japan’s nuclear plants. Coal accounted for 33% of the country’s electricity mix in 2017, up from 27% in 2010. Regional electricity...