Global coal consumption projected to reach record high

Global coal consumption is projected to reach a record high of 8.94 billion tonnes this year, according to the International Energy Agency (IEA) 'Coal Mid-Year Update 2026' report. This surge reverses previous forecasts of a slight decline.

The increase is primarily driven by liquefied natural gas (LNG) shortages resulting from conflict in Iran, which has blocked the Strait of Hormuz and significantly restricted supply. The resulting high gas prices have forced several regions—including Europe, Japan, South Korea, India, and China—to increase their reliance on coal-fired electricity to compensate for costs.

Additionally, an intense El Niño weather cycle has contributed to the rising demand. India and China remain the primary drivers of this growth; Indian demand is expected to rise by 4.2 percent to 1.353 billion tonnes, while Chinese consumption is projected to increase by 1 percent to reach 5 billion tonnes.