finance
Japan's LNG Imports Fall 7 Percent as Utilities Shift to Coal
Japan generated 17.3 terawatt-hours from gas-fired plants in June, down 16 percent from the prior year. Coal-fired generation rose 4.6 percent over the same period.
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Japan reduced gas-fired electricity generation last month while increasing coal use as LNG prices stayed elevated. The country produced 17.3 terawatt-hours from gas-fired plants in June, a 16 percent decline from June 2025, according to data reported by Bloomberg.
Coal-fired generation rose 4.6 percent in the same month, based on figures from Japan's nine largest power utilities. The shift follows the start of the war in the Middle East and has occurred across multiple Asian countries seeking lower-cost fuel options.
LNG prices in Asia remain 70 percent higher than levels before the U.S. and Israel launched missile attacks on Iran. Japan has continued to favor coal over gas for power generation on cost and availability grounds. LNG imports into Japan fell 7 percent last month amid the generation changes.
Multiple reports indicated improving energy flows through the Strait of Hormuz, yet prices have not declined enough to reverse the fuel switch.
