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Coal's future in Asia hinges on US LNG supply

Asia's coal use and power sector emissions are expected to soar unless the US ramps up its liquefied natural gas (LNG) exports to the region, according to a new Wood Mackenzie study.

According to the study commissioned by the Asia Natural Gas and Energy Association (ANGEA), Asian LNG demand is set to double from 270 million tonnes per annum to 510 million tonnes per annum by 2050. This will be driven by economic growth, population increase, and a push for cleaner energy sources like renewables.

Thus, the continued growth of US LNG production is crucial in balancing global markets and providing Asia with a cleaner, more affordable alternative to coal, the study said.

“Wood Mackenzie has modelled two scenarios: one where the current halt to U.S. LNG export approvals to non-free trade agreement countries is lifted early in 2025 and another where this ‘pause’ stays in place longer-term,” ANGEA CEO Paul Everingham said.