Conflict in Middle East causes gas-to-coal switching in energy sector — IEA

MOSCOW, April 24. /TASS/. The military conflict in the Middle East has led to a partial substitution of gas with coal in the energy sector, which could reduce global gas consumption by 60-65 bln cubic meters (bcm), according to the International Energy Agency’s (IEA) Gas Market Report. "The strong increase in Asian and European prices is already incentivizing gas-to-coal switching in the power sector. The share of natural gas in the European Union’s fossil fuels-based thermal mix fell from an average of 58% in February to around 52% during March. In Asia, Japan and Korea lifted administrative restrictions on coal-fired power generation, while Thailand ordered the restart of retired coal-fired power plant units," the report said. Gas-to-coal switching, including in China, could reduce gas burn in the power sector by 60-65 bcm on an annualized basis, the IEA noted. In 2025, roughly 85% of combined LNG supplies from Qatar and the UAE went to Asian buyers, with Pakistan, Bangladesh, India, and Singapore accounting for more than half of their LNG imports from these volumes, according to the report. As a result, in March, LNG imports lost 70% by Pakistan, 11% by Bangladesh, 16% by India, and 30% by China. Overall, global LNG production fell by 8% in March, while Asian imports decreased by 6%.