Global Coal Demand Rises as LNG Shortage Deepens

Liquefied natural gas flows from the Persian Gulf are still over 75% lower than they were before February 28th. Yet heating demand is rising ahead of winter. In Europe, the November natural gas benchmark contract is trading at over 81 euros per MWh. In Asia, the spot market LNG price topped prices for Europe, drawing cargoes eastward. Meanwhile, coal is 80% cheaper than LNG. Coal has been the target of much climate-related regulation on the basis that it emits the most carbon dioxide plus pollutant gases and particulate matter. Yet coal has remained…