Global coal demand forecast to rise by 1.2% in 2026 to a record 8.94 billion tonnes due to Middle East conflict, IEA says

Global coal demand is forecast to rise by ​1.2% in 2026 to a record 8.94 billion ‌tonnes due to the Middle East conflict, the International Energy Agency said on Thursday.

• Disruptions to oil and liquefied natural gas ​shipments through the Strait of Hormuz since ​the U.S.-Iran war started have driven up prices ⁠and encouraged higher electricity generation from coal in countries ​that have gas-fired power fleets and spare coal capacity, ​the IEA added in an update on the coal sector.
• There has been higher coal use in Europe, Japan, Korea, China ​and other markets than previously expected.
• The IEA had expected ​global coal demand to decline slightly this year.
• Next year, there is ‌uncertainty ⁠about demand as it will depend on whether shipping traffic through Hormuz recovers. If it does, demand could decrease in 2027 but if the strait remains ​largely closed to ​LNG shipments, ⁠coal demand could increase further, the IEA said.
• Global coal production is expected to ​decline this year but is set to ​remain ⁠above 9 billion tonnes for a third consecutive year.
• Output in China, the world’s biggest producer, declined after safety inspections ⁠following ​a major mine accident in ​May which has resulted in a significant reduction of coal production.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.