Since the escalation of the conflict in the Persian Gulf until mid-April, the prices of liquefied natural gas (LNG) on Asian markets increased by as much as 81%, and in the second half of March these increases reached up to 108%.
For comparison, thermal coal prices increased by only 24% in the same period. – reports PIE. This phenomenon indicates the potential of coal as an alternative to increasingly expensive gasespecially in sectors where its use is technically possible.
Coal is coming back into favor in the Far East
PIE experts point out that many countries such as South Korea, Thailand, the Philippines and India, have already announced initiatives to expand the use of coal in electricity production. In some cases, it was decided to delay the closure of old coal-fired power plants or suspend the applicable limits on their operation.
In other countries, such as China, India and Indonesia, where coal has long dominated the electricity sector, the potential for further growth in its importance is limited.
“In China and India, coal plays not only a key role in the energy sector, but also in industry, where it is used, among others, in steel production and in large-scale chemical synthesis, including the production chains of fertilizers and plastics,” the analysis indicates.
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In recent years, coal consumption in the Chinese chemical sector has been systematically increasing, which further strengthens its importance in the country's economy.
Safety is more important than efficiency
The authors of the PIE report note that although modern gas power plants are characterized by lower pollutant emissions and greater efficiency and flexibility, subsequent crises on the LNG market mean that local, cheaper raw materials such as coal become more attractive.
“It is the countries that meet most of their coal demand with their own mining, such as China, India and Indonesia, that can maintain its importance in their energy mixes for the longest time.” – emphasized.
This does not mean, however, that new investments in coal-fired power plants are planned in the region outside China and India. Short-term solutions are preferred, such as delaying renovations or extending the service life of existing installations.
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The increase in gas and LPG prices also affects the everyday life of residents of some Asian countries. In India and Thailand, coal and wood are increasingly used as fuel for preparing meals, which is a return to traditional, although less ecological solutions.
