Coal prices have surged to their highest level since November 2024, driven by the ongoing shutdown of Qatar’s liquefied natural gas (LNG) plant. The unexpected outage has increased the need for fuel-switching in the electricity sector, bolstering demand for coal.
Newcastle coal futures, the benchmark for Asian coal prices, jumped 7.3 per cent to $US135 per tonne. This follows an 8.6 per cent increase in the previous trading session. The rise in coal prices is a direct consequence of QatarEnergy halting LNG production due to military actions targeting its facilities in the Ras Laffan and Mesaieed industrial cities.
Qatar is a major player in the global LNG market. The company exported approximately 81 million tonnes of LNG last year, representing nearly 20 per cent of the global market share. This places Qatar second only to the United States in LNG exports, with Australia ranking third. All Qatari LNG exports must transit through the Strait of Hormuz, a strategically important waterway.
The reaction among coal miners on the ASX was mixed. Whitehaven Coal experienced a gain, rising 1.7 per cent. However, Yancoal and New Hope saw declines, falling 2.8 per cent and 0.6 per cent respectively. Whitehaven Coal is a leading Australian coal producer. Yancoal Australia is one of Australia’s largest pure-play coal producers.
