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Markets & Forecasts

LNG challenges coal in Asia’s power growth

LNG imports into Asia may soon be cheap enough to trigger fuel-switching in regional power generation, supporting newbuild LNG and gas-to-power projects LNG imports into Asia may soon be cheap enough to trigger fuel-switching in regional power generation, supporting newbuild LNG and gas-to-power projects.
By Alessandro Vitelli 30 January 2020 Asia Pacific / Supply & Demand 0 34978
Sinopec LNG Terminal in Qingdao, Shandong. (Sinopec)

The key issue: While coal remains Asia’s primary fuel for electricity generation, the cost of gas is reaching levels that make it competitive.

Interfax analysis: A year-long decline in global natural gas prices may soon start to have a structural impact on coal consumption in Asia, as it already has in Europe and the United States.

Massive growth in US LNG exports has contributed to tumbling prices around the world. While coal remains Asia’s primary fuel for electricity generation, the cost of gas is reaching levels...